What is Physical Distribution in Supply Chain Management? A Detailed Guide in 2023
The Covid-19 pandemic has largely shifted the purchasing behavior of consumers from offline to online. The Indian online retail market is growing at a very fast pace and is expected to reach approximately $1.2 trillion (95 lakh crore). As an eCommerce seller, you need to grab this opportunity and establish your business by utilizing the required business tactics. Getting listed on multiple channels and receiving orders are not the only things you should do when it comes to the long run. To not only be in the game but also win, you need to make your end customers happy. That is possible with the perfect placement of your product from the very first impression by the buyer to delivering it to them as they expect. To achieve recognition from your customers, you must take care of fulfillment services and all of its processes which involve processing orders, controlling inventory, eCommerce warehousing, and eCommerce shipping. All of these factors fall under physical distribution in supply chain management. This has been the primary focus of most eCommerce brands in recent years. To ensure you as a seller are handling the physical distribution of goods properly and what the available options are to become more productive, you can read further. What is Physical Distribution? Physical distribution is the movement of finished goods and products from a company's distribution center, using its eCommerce fulfillment network, to the end-user. It includes warehousing, inventory control, order processing, retail fulfillment, and shipping, among other eCommerce supply chain tasks. Customer satisfaction is directly affected by the physical distribution of goods and the capacity to get a product to a consumer rapidly and affordably. Business owners can ensure sustained success in a continuously changing, competitive global market by keeping items in handy places and developing dependable means of moving those items. [contactus_gynoveda] What are the Components of Physical Distribution? Processing Orders During the physical distribution of goods in huge quantities, a uniform system for handling and executing orders should be established. The time period to process orders must be reasonable. Any delay in order execution causes resentment and may result in economic loss. The customer always expects guaranteed delivery within a certain time frame. The degree of customer service is shown in the speed by which orders are fulfilled. Even a small improvement in customer service can result in a 15 to 25% gain in revenue. In marketing, order serving time can also be used as a USP. Controlling Inventory Inventory control is always a crucial part of the order fulfillment process. Physical distribution channel management, including the amount, location, handling, and transportation of physical inventory, plays a distinctive role. Inventory consists of all the items stored in warehouses that are waiting to be sold. Production activity (purchasing activity) and customer orders are linked via inventory (sales activity). As the customer service level approaches 100%, inventory costs rise at a faster rate. The inventory cost and the level of customer service must be correlated and balanced. All that has to be maintained with a proper inventory report. To meet client demand, you need to have a well-balanced range of products for sale. Stockouts and missed sales can result from having an insufficient inventory. Too much inventory entails a lot of money upfront, poor turnover ratio, and greater inventory operating costs. Inventory control's major goal is to ensure minimal capital investment and inventory variations, as well as rapid order execution in response to client demand. You May Also Read: How does multiple channel inventory management work? Warehousing The act of storing and conserving commodities is known as warehousing. It can balance supply over time. Nowadays, micro fulfillment centers are located around markets rather than the supply-chain network. Under one roof, a fulfillment center can handle orders and deliver goods directly to customers where better and faster customer service can be initiated, resulting in a cheaper cost of distribution. Efficient distribution systems can cut delivery and storage times by half. The focus should be on selling rather than the store. Many businesses are moving away from storage facilities and toward fulfillment centers. For material handling, data processing, and inventory control, fulfillment centers employ cutting-edge technology. The services provided by fulfillment companies are directed by a wholesaler through direct fulfillment or drop shipping fulfillment. Here the wholesaler act as a merchant intermediary and a distribution/fulfillment center could be considered as an inventory of a shop nearby the delivery area. Handling Material Modern warehouses have automated material handling equipment instead of relying on labour. The cost of physical distribution has been dramatically reduced because of new packaging, containerization, and palletization techniques. We now have access to machineries such as conveyor systems and forklift trucks. In Western countries, material handling is almost entirely automated. Standard-size containers for packing and transporting items can be stored on pallets or small platforms and then moved by mechanical means. Automated physical distribution of goods and protective packaging enhance customer service, reduce distribution costs and accelerate order fulfillment. Shipping Physical Distribution consists of all the steps that ultimately lead to this final step that is responsible for getting orders to the buyer. The process of shipping is a network of activities that consist of storage at multiple sites coupled with a series of transport linkages during the distribution process. These multiple modes of transport can be through road, rail, water, air, etc. It is a very complex activity in which orders are divided into batches and groups and then forwarded to the person responsible for the order to be delivered. This complexity is usually handled by logistics companies. The different transportation methods of physical distribution are listed below: Road Transport: Trucking is the preferred shipping option for most businesses across the world. Trucks, which generally transport manufactured goods rather than bulky commodities, provide faster, more frequent, and cost-effective distribution to more locations across the country than any other logistical alternative. Trucks are very useful for short-distance shipments and they can carry both large and small cargo with relatively fast and consistent service. Intermodal Transport: Intermodal shipping arrangements, which combine rail and truck transportation for specified stages of the journey, are frequently used by a small business for fulfillment. This combination generally results in cheaper overall expenses than single-mode transportation. Air Transport: Enterprises often use air freight for the transportation of valuable or perishable goods due to comparatively high transportation costs. Reduced inventory-holding expenses and increased sales that may accompany speedier customer service can occasionally balance the high cost of air freight. Courier Shipments: The delivery of shipping containers, parcels, or high-value mail as discrete shipments is known as package or parcel delivery. Most postal systems, express mail services, and private courier businesses offer courier shipment services or eCommerce courier services. Water Transport: Shipping containers are routinely used to transport products via sea. Importers and exporters in the country and around the world use ocean freight as their primary form of transportation. You can check the best shipping companies for your business here. What are the Objectives of Physical Distribution? Utilizes Time and Place Physical distribution contributes to the efficient utilization of time and resources. Transportation and warehousing are used to accomplish this. The transportation system creates place utility by delivering items to the exact location where they are needed. Storing products and releasing them when needed utilizes time. Reduces Costs of Distribution Physical distribution costs make up a significant portion of the product's cost. If these costs are managed in a systematic manner, production costs can be reduced. Transportation schedules and routes, warehousing location and operation, material handling, order processing, and other cost-cutting measures can all be simply implemented. Enables Market Expansion Mega investments in the form of a strong promotional campaign may prove worthless if the physical distribution channel continues to fall behind the market expansion. Firms will be in a great position to take full advantage of market expansion with prior planning for the launch of multiple warehouses, adding new distribution points, and extending the capacity of existing distribution points, as needed. Maintains Market Share The market is highly saturated. In a climate of fierce competition, firms expect to increase market share, while maintaining current market share would be a primary success. This is carried out with the use of proper eCommerce logistics systems. Logistics must be closely monitored by businesses. Companies should detect distribution flaws and take quick corrective action. Stabilises Pricing Physical distribution contributes to price stability. Buyers anticipate pricing constancy over time. The effective utilization of transportation and warehousing infrastructure can aid in matching demand with supply, ensuring price stability. Offers Better Consumer Experiences By using a physical distribution channel, consumer service is made more efficient by making products available in the correct quantity at the right time and in the right location, i.e. when a client needs them. 6 Factors That Affect Physical Distribution in 2023 Every manufacturer must figure out how to get their goods to the end-user. In today's economy, a variety of distribution channels are accessible. A producer needs to keep the following points in mind while choosing one or more distribution channels to ensure smooth operation and lowers logistics costs. Transportation Source Distribution is always dependent on the supply chain and its efficiency. There are many factors to consider to enable faster delivery in a country like India, where customers are scattered across the country. Product Size Source Product size is a matter of concern when it comes to cost-cutting and delivering on time. A heavy item cannot be delivered quickly and easily without prior planning. It needs more manpower, warehouse space, and larger vehicles which directly affect the cost of logistics and delivery. In a similar way, smaller and more perishable products also require their own precautions such as proper storage facilities, extra care, etc. Product Durability Source These days, food delivery applications are claiming to deliver orders in just 10 minutes. This is because food is a perishable product. Sellers need to identify the perishability of their products and plan physical distribution processes accordingly. Delivery Preferences Source Customers often have preferences for the delivery of their product such as the location, time, etc. It is the responsibility of the retailer to ensure that these preferences are respected to achieve a positive delivery experience for the customer. Suggested Read: What is retail logistics? Delivery Partner Reachability Source It is nearly impossible to deliver across the country and make it smooth. A seller can partner with different logistics companies in different locations based upon their area specializations, better workforce, good manager, etc. So here, a seller needs to be smart and choose the best order eCommerce fulfillment company for specific areas. The delivery partner should also be easily contactable by the customer in case of any query, instruction relays or emergencies. Warehouse Management Systems (WMS) Source To perform complex supply chain tasks, handing hundreds-thousands of orders, moving thousands of miles in multiple vehicles, successfully delivering the product and minimizing the cost to do it is not an easy task for a retailer and consists of multiple variables. To make this more simple and efficient, a business needs high-tech software like Warehouse Management Systems (WMS). It also gives them tracking and transport abilities. Conclusion: Why Should You Outsource Physical Distribution to WareIQ? Physical distribution is a series of complex tasks and if even one of them goes slightly wrong, it can have a drastic impact on the entire supply chain. Businesses not only need to figure out the best way to accomplish this but also in the most cost-effective way possible, which takes away precious time and activity that could be spent on trying to grow the business. 3PL fulfillment companies such as WareIQ can take away some of that burden by enabling you to offload the entire process of physical distribution. Some features that may entice you are listed below: Cost-Effective With so many delivery options and an endless amount of envelopes, bubble wrap, double-walled boxes and tape needed to keep your items safe in transit, distribution is more complicated than you think, which is why outsourcing can save you a lot of money, not just on the physical costs but also on the costs to your reputation. Trusting WareIQ to handle and deliver your goods will provide you with a competitive advantage and keep your partners satisfied since you'll benefit from our years of experience and deep industry knowledge. Without costly overheads and adaptability to individual needs, WareIQ provides you with a single location for your material to be stored, managed, developed, and provided. Because of the high amount of parcels shipped each year, WareIQ has wholesale accounts with more than 20 dependable couriers, airmail and freight partners, allowing you to save up to 50% on your distribution costs when compared to other suppliers. Flexible & Efficient Outsourcing gives you more flexibility, which is important if your firm is seasonal or has peaks and valleys. Inventory levels and delivery requirements can fluctuate from month to month as your company expands. WareIQ empowers you to adapt to required changes and continues to provide a professional and reliable service with more productivity to your business. We are dedicated to our role and create solutions that add value to your business as well as your brand image. You can manage your stock remotely and view historical statistics for each order using our online system. It also gives you accurate stock data so you can avoid wasting money and make better judgments about printing and distribution during each marketing season. Focus on Core Operations Preparing to send something overseas takes time that you and your team could spend elsewhere. Few people outside the distribution industry are aware of the constantly changing customs restrictions and complexities of international and local distribution. This is also not common advice given by large courier firms; nevertheless, WareIQ has an experienced team that is available to advise, educate and support you. It's much easier to outsource your distribution than to do it yourself. You can completely concentrate on your core business and you will never have to worry about fulfillment again. Suggested Read: Retail Distribution With WareIQ [signup] Physical Distribution FAQs (Frequently Asked Questions) What is physical distribution management?The movement of finished items from a company's distribution and fulfillment network to the end-user is referred to as physical distribution management. Physical distribution in eCommerce includes warehousing, inventory control, order processing, retail fulfillment and shipping, among other eCommerce supply chain tasks. Why is physical distribution important?A company's physical distribution function provides the location and time dimensions that contribute to a fundamental aspect of the marketing mix. Transportation and warehousing are the two most important aspects of physical distribution that help in faster deliveries for a better customer experience at affordable prices. What is the objective of physical distribution?Physical distribution's main goals are to get the appropriate items to the right client at the right time and place. In other words, while efficiency and quality service are important goals of physical distribution, they may compete with one another. How can WareIQ help with your physical distribution requirements?WareIQ offers services for the whole range of fulfillment requirements including all the processes that physical distribution comprises such as storage, shipping, order fulfillment, and customer satisfaction.
March 10, 2023
Beginners Guide: What is Retail Fulfillment? Definition, Types, Challenges, and Strategies for Fulfilling Retail Orders in 2023
In some scenarios, customers may go to a shop and enquire about a product that is currently out of stock at the shop. The shopkeeper would have a few different ways to convey the news to the customer, without displeasing them. They could say that the stock is overdue to high demand and that fresh stocks of the product would be available in 2-3 days or something of that nature. This example encapsulates what retail fulfillment is, where a seller is trying to obtain the product for the customer. Similarly, the same process is followed by online retailers. You, as a seller, should work according to the supply and demand of relevant products. These days, a lot of sellers have gravitated to selling products online. You can see the same products with the same benefits at similar rates offered by different sellers on multiple selling channels. All of them may not have the product physically at their eCommerce warehouse but they still continue to sell it. The question is, how? The reason behind it is that they all take advantage of retail fulfillment. What is Retail Fulfillment? The process of assembling and eCommerce shipping a customer's order is known as retail fulfillment. After a consumer places an order online, an eCommerce merchant is responsible for packaging the shipment with the correct products and placing the box into transit, which is the primary difference from conventional stores, where customers browse and purchase items themselves. It is a specialized branch of logistics that is more intricate, complex, and distinct from DTC (direct-to-consumer) fulfillment. Sending goods to stores necessitates a higher level of quality control, precision, and attention to detail. You will need the necessary tools to interact with each merchant separately to ensure a pleasant encounter. [contactus_lilgoodness] What are the Types of Retail fulfillment? Retail fulfillment can be classified into 3 categories: In-House Fulfillment ModelDropshipping ModelThird-Party Fulfillment (3PL) Model In-House Fulfillment Model In-house fulfillment model is where an eCommerce seller provides order fulfillment on their own. It is either done by a small-scale business, where the scale is small enough for it to be done in-house, or a huge business which has its own resources such as in-house warehouses, human resources, and its own supply chain network. Here are the pros and cons of the In-house fulfillment model Pros: Ability to focus on individual product delivery: A small business with few delivery orders can easily focus on individual deliveries they need to fulfill. A big business can also focus on individual delivery with its in-house fulfillment system. They can customize delivery according to the buyer's preference. Opportunity to save costs on bulk orders: If a buyer orders more than a single product and wants it to be delivered to the same address, the cost of delivery decreases due to taking advantage of economies of scale. Access to door-step branding: An employee with a company that does in-house fulfillment can contact customers directly, on behalf of the company. It will increase the brand presence and add extra value to your orders. Access to direct feedback: Similarly to the point above, company personnel can contact customers directly to solve any query, issue or get customer feedback. They can directly guage the customer’s preferred experiences and solve any issues on the spot. Cons: Increase in prices: In the case of a small business where the seller has to fulfill every order themselves, prices can definitely add up. For big businesses, it can be expensive if they have to deliver products to different places. Need for dedicated resources: Sellers have to put in all their effort to provide suitable order fulfillment. They need to invest in dedicated resources in order to provide a good retail experience to their customers. Increase in time consumption: Good retail fulfillment takes time. A delivery initiated from South India that has to be delivered to North India could take at least 3 days if you are not an expert, which would seem like ages in todays world of same-day and next-day delivery. Limited growth potential: If you are taking care of an essential aspect of your business such as retail fulfillment, you may end up neglecting other tasks such as product development and marketing. Suggested Read: What is Small Business Order Fulfillment? Dropshipping Model Dropshipping Model is where a seller does not stock inventory in their own warehouses. They get orders from their website and other selling platforms and dispatches them from an OEM warehouse or a fulfillment center. The seller functions as an aggregator. What does OEM Means? Here are the pros and cons of dropshipping model: Pros: Requires less space: A physical seller's storage space is required to showcase their shop and to store their products. An online seller can showcase their products on online selling platforms or their dropshipping website, negating the need to have a huge store. Removes the need to manage inventory: With no storage needed for products, a seller does not need to manage inventory. Sellers also do not need to hire resources for such work. Provides flexibility to your business: It gives you the benefit of running your business remotely from anywhere on the globe. It does not matter if you are working from your office or any other location. You can still do all the same things you could if you were physically present such as confirming and fulfilling orders. Cons: Lack of self-branding: Under the dropshipping model, a seller cannot do self-branding as per their requirements. They never handle the product directly. The only thing they can do is provide customised order invoices. Difficulty in quality control: The product is never accessed by the seller because orders are just confirmed and sold through dropshipping. The chances of poor quality control measures can increase without the seller's knowledge. Reduced profit margins: The model is quite cost-effective and maintenance-free so many sellers are adopting similar business models. Thus. competition is higher than in other models so profit margins are lower. Dependence on OEMs: Here, sellers do not have the freedom to fulfill the items according to their preferences. They will have to accept guidelines from the manufacturers regarding their timing, working style, rate fluctuations, etc. Differences Between B2B Fulfillment and Retail Fulfillment B2B fulfillment is not the same as retail fulfillment. It's a general term for sending things in bulk to any company. Shipping boxes from one business address to another is what B2B fulfillment is all about. It could entail delivering items to a store or a corporate facility for staff to utilize, such as shipping documents from one office to another. B2B fulfillment includes retail fulfillment. Traditionally, this meant things would end up on store shelves, but with the growth of eCommerce, it can also mean products would end up on the pages of a retailer's online shop or marketplace. If a merchant sells their goods to a retailer, they could end up in the seller's shop, godown, warehouse or fulfillment center, or micro-fulfillment centers. On the other hand, in retail fulfillment, the seller plus retailer never asks merchants to deliver products to them. The retailer can directly send it to the buyer or a third-party fulfillment center. [table id=3 /] In order to know about other types of fulfillment, you can read direct order fulfillment and D2c fulfillment here. What are the 6 Steps Involved in the Retail Fulfillment Process in 2023? There are several steps involved in retail fulfillment and they are listed below: Receiving New Inventory New inventory must be sent to your fulfillment center for storage. Each SKU will require its own storage area (bin, shelf, or pallet). You must process, organize, document, and stow inventory once it arrives at a fulfillment facility. You'll need to order additional inventory as you are continuously selling products. Reorder quantity management for retail fulfillment needs a deeper grasp of inventory forecasting as well as strong collaboration with manufacturers. If you want to opt for retail fulfillment, you'll need a warehouse management strategy that includes organization, infrastructure, software, and processes for inventory tracking, as well as stations dedicated to each retail fulfillment process. Warehousing You'll be able to use those products to fill customer orders after inventory storage is complete. To avoid stockouts, keep an eye on stock levels and set reorder points so that you can order more inventory if it falls below a certain level. Your shipping costs will be heavily influenced by where you keep and ship your things (i.e., the farther away from the shipping destination, the more expensive the delivery will typically be). Picking and Packing Orders When a customer places an order, a picking list should be generated. The seller must start gathering the items needed to complete the request. Items from one order must be stored separately from those need for other orders. You can pack an order once all of the products have been selected. To save money on shipping, use boxes, poly mailers, and packaging materials that will both protect your products and add up to the smallest possible dimensional weight. Shipping Orders When you ship orders, keep an eye on the ship date as well as the promised delivery date or estimated timeline. If your online store's delivery policy requires orders to be shipped the same day, make sure you are in line with fulfilling the policy. Processing of Returns Customers will almost certainly return eCommerce orders at some point, and you must be prepared. Reverse logistics management that is well-designed can cut expenses and mitigate problems connected with returns and exchanges. Retail Ratings, Issues, and Chargebacks A logistic company is judged by its retail fulfillment process which includes the duration of delivery, accuracy, and rating by others. These days, if a fulfillment company does not meet the retailer’s expectations, the retailers may fine them which is called cashback. This cashback can be fixed or a percentage of the chargeable amount. Suggested Read: Beginner's Guide to Retail Distribution. What are the Challenges and Solutions in the Retail Fulfillment Process? Growing Order Volume With the passing years, online shopping is growing so the number of orders is increasing proportionally. This is leading to an increase in order fulfillment demands and handling thousands of orders is not an easy task. If you are providing a bad experience to your customers, there are high chances that you will lose them in the long run. In this situation, it is better to opt for 3rd party fulfillment companies. Lack of Visibility of Delivery Routes The retailers who fulfill the customer's demand through dropshipping methods have the pain of lack of visibility of the delivery route and it is amplified by partnering with any third party fulfillment company. Inefficient Manual Processes With a high number of orders which need to have 100 % accuracy at the scheduled time, manual processes need to be reduced as much as possible. Manually it is nearly impossible to manage retail fulfillment centers, track inventory, navigate, assign drivers and manage any other logistical processes. This reduces efficiency, kills time, and hinders growth due to which the customer experience suffers. Choice Between One or Many Retail Fulfillment Providers As a seller, when you choose multiple channels to sell your product on, you should also tie-up with several logistics companies. They offer fulfillment services in different locations, for different kinds of products and have different specializations. You can also partner with fulfillment companies, that will track the record and accuracy of different retail logistics companies and will give you the best option. Scheduling with Customers These days, many people shift their locations for work, studies and other purposes, which is also a reason for buying products online. Time is of the utmost importance to them which means that the sooner they receive their parcel, the more satisfied they will be and the more positive reviews your business will receive. Conclusion: Does Your Business Require Retail Fulfillment? Technology has driven our life into a different world. Today in India, we have 100s of unicorns. Each of them caters to new technology and has similar ideas and creative goals which are usually to encourage eCommerce retailers like you, to partner with them to outsource various requirements. For this, you need them to plan your investment budget and set a timeline. You just need to play it smart and you can also earn revenue. A great example of this is Amazon. As we know it is the biggest online retailer in India but doesn't have a single physical store and offers only a few core products that they sell using their own brand while offline sellers like BigBazar went bankrupt. The pattern of bankruptcy shows BigBazar invested millions in procuring products, investing in new physical stores, warehousing, hiring in-house experts, etc. As a business, when it comes to increasing sales or expanding your operations, you should always be open to adopting new trends and technology. If you are a seller, you should opt for multiple selling options and if you choose to sell online, retail fulfillment is one of the necessities to sustain your growth and increase your reachability over the nation and across the globe if you aspire to do so. WareIQ is one of the emerging players in the retail fulfillment space. WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading full-stack eCommerce fulfillment company for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next day delivery to customers. WareIQ manages the entire range of complex operations in the eCommerce fulfillment process, such as inbound functions like scanning and quality check, 100% accurate Pick and Pack, and inventory management across all channels, with a centralized platform for core fulfillment and shipping operations and post-shipping apps for a delightful experience and zero to minimal supply chain leakages. WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. WareIQ’s Ecommerce WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic retail replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Retail Fulfillment FAQs (Frequently Asked Questions) What is fulfillment in retail?The process of preparing, organizing, and shipping an order so that it reaches its intended destination, which is usually the location of the person who placed it, is known as retail fulfillment. A fulfillment service can handle some or all of this procedure. What is the most important aspect of retail fulfillment? Order Fulfillment is the most important aspect of retail fulfillment. Having your orders delivered on-time, accurate, and in line with the specifications of the ordered items is paramount to a continued relationship with the customers. Is retail fulfillment an approach?Yes, retail fulfillment is an approach. By this we mean, it is an approach to manage inventory, customer orders, and shipping in a retail setting and making sure that orders to customers are delivered quickly and efficiently. Is there any benefit with a third-party logistics company (3PL) in retail fulfillment? There are many benefits to working with a 3PL provider, especially one that specializes in retail fulfillment. What are the steps involved in the Retail Fulfillment Process?• Receiving New Inventory • Ecommerce Warehousing• Picking and packing • Shipping Orders• Post shipping experience What is the process of optimization in Retail Fulfillment?• Selecting a fulfillment Center • Integrated Fulfillment Software • Shipping Time WareIQ, as a retail fulfillment partner, optimises the entire fulfillment process for same/next day delivery.
March 06, 2023
Minimum Order Quantity Explained: Formula to Calculate MOQ & 10 Benefits of MOQ for eCommerce Business in 2023
These days, starting a business is not a big deal, especially in the eCommerce space. People have enough money through their own resources or through investors but what they lack are knowledge and free time. They may know about the basics of demand and supply but don’t know how the nuances of running an eCommerce business or various factors that affect online business growth in multiple ways. Those factors can be efficient inventory management, warehouse management, streamlined last-mile deliveries, payment collections, etc. In eCommerce, inventory plays a crucial role. It is the biggest asset of a business among all its resources. Buying goods or raw materials isn't always easy for a seller. You need to find a trustworthy company that not only sells the necessary supplies at the right price but also allows you to order the most suitable amount possible and preferably, does not impose a minimum order quantity (MOQ). It is critical to understand how minimum order quantity works and why some suppliers may employ it. If appropriately controlled, it can help you boost your profits with increasing cash flow. MOQ can impact several aspects of an eCommerce business, including inventory management, pricing strategy, and customer experience. In this blog, we'll dive into the importance of MOQ and provide tips calculating MOQ and for finding the right balance between maximizing sales and minimizing costs. What is Minimum Order Quantity (Meaning of MOQ)? Minimum order quantity is the least number of units of a product that a retailer offers to sell to their customers at a particular time. In the eCommerce industry, it is mostly offered by a manufacturer or supplier in the context of production activity. A merchant can ask you to order an MOQ for a certain amount of money. MOQs are a reflection of the financial limits faced by suppliers while fulfilling an order. These can include expenditures associated with material, machinery, and completion of that order, such as shipping costs. It is maintained by suppliers to maintain sales margins and lower the operational and logistical costs of the business. What are the Different Types of Minimum Order Quantity (MOQ)? Simple Minimum Order Quantity Many businesses are not retailers although they have to fulfill a single order. The lowest limit could be the minimum order quantity or the least amount spent on the purchase. For example, a bike dealer directly buys bikes from the manufacturer but sells them in individual units. They maintain MOQ with a limited amount of stock with keeping in mind the constraints of economic factors by their target buyers. Complex Minimum Order Quantity Here, a retailer deals with many constraints at one time by taking care of various metrics such as price charts, quantity, quality, etc. A good example of this is orders placed by a grocery store owner or a chemist. A chemist has to fulfill orders for several medicines at a time for which they have to store different types of medicines in varying quantities. How does Minimum Order Quantity Affect Inventory? For both the supplier and the buyer, the minimum order quantity has a significant impact on inventory. Sellers who pick a high minimum quantity must produce and store large amounts and thus, their inventory management is affected by the MOQ. Buyers, on the other hand, must determine whether they require their product's MOQ, or else find another supplier with a lower minimum order quantity or explore various other inventory storage solutions. Buyers must think about things like storage capacity and the potential savings from acquiring products in bulk. Main Point of Difference Between Low MOQ and High MOQ High Minimum Order Quantity (MOQ) Suppliers with a high minimum order may need to keep a large amount of inventory with them to fulfill orders. Suppliers may need more time to fulfill orders if they want to keep inventory levels low and adopt just-in-time inventory management. Inventory requirements that are larger involve a lot of working capital and take up a lot of warehouse space. However, they save administrative expenses since products or raw materials can be ordered less frequently, resulting in savings further down the supply chain. While stockouts are less likely, there is a higher chance of products becoming obsolete with a high minimum value, particularly in the case of electronics. Low Minimum Order Quantity (MOQ) Suppliers don't require as much inventory on hand for orders with a low minimum order quantity because the typical order size is likely to be smaller. This could result in lower inventory levels and higher inventory turnover. A low minimum value might put a strain on your sales team, forcing them to manage more customers and work more to generate leads. Because orders are placed more frequently, administrative costs are higher. While low MOQ suppliers suffer the danger of running out of stock, they also run the risk of obsolescence. How to Calculate Minimum Order Quantity? There is no particular formula to calculate MOQ. It depends on various factors of a business like its size, location, operational sector, etc. It is built up to accommodate each supplier's unique problems and business needs. Businesses must select whether they want a lower minimum order quantity with a higher price when purchasing from their suppliers or vice versa. The more you buy from suppliers, the easier it is for them to cut costs per unit, which is why this system exists. Even though there is no set quantity for MOQ, there are a few things to consider when determining the optimum MOQ. Estimating Demand Demand forecasting considers product type, competition, seasonality, and other factors when calculating how many units you will sell as a merchant while ordering inventory. This information can assist you in making your next purchase decision. Inventory and demand forecasting go hand in hand in this equation. You might find that the manufacturer's minimum order quantity isn't far off from what you'd be able to sell. You'll also want to factor in your overall timeline for preparing the inventory to be shipped, which should include lead times, freight transit times, receipt of goods in the warehouse from your third-party logistics service provider (3PL), and any other potential delays, as you may find the need to order inventory sooner than expected. Knowing Your Break-Even Point If you want to set your minimum order quantity, you'll need to know what your break-even point is. When you recover the customer acquisition cost and your customer returns through email marketing efforts, you will get a better idea during the second transaction for DTC orders. Consider the lowest per-unit monetary amount you're willing to charge in exchange for a larger order value for wholesale agreements. It can't be so low that your profit margins suffer but if you're not merely paying for lesser amounts at a greater price, discounted prices are expected. Calculating Holding Capacity and Cost Some items are more costly to store than others (due to size, duration of storage, and special ecommerce warehousing requirements). It's more cost-effective to keep such items out of your inventory for as long as possible. The true cost of storing all of your products will reflect in your inventory holding cost, which you must consider before spending extensively on inventory. Framing Your MOQ Strategy Let's assume that you have high demand at all times. Suppose on average, your partners order 200 units per order, and you need to sell at least 150 units per order to break even. If your partners or clients have previously agreed to buy 200-unit orders, you might need to set your minimum order quantity to 200 units, or even lower to 150. Benefits of Minimum Order Quantity for Multichannel eCommerce Sellers and Buyers in 2023 A seller who sells their products on multiple channels including their websites through means such as dropshipping and 3rd party fulfillment has to strongly take care of the minimum order quantity. These days, retailers taking advantage of multi-location warehousing rely on order management software to manage all their orders and inventory. It helps them to cut costs on individual products which are transferred to buyers. Benefits for Sellers Better Cash Flow A seller should stock the right volume of inventory so that is not too high that they have to hold it for long periods of time where their money remains withheld and not too low where they cannot fulfill all their orders. Proper maintenance of minimum order quantity helps them to save more efficiently and have a better cash flow. Low Inventory Costs Storing a high volume of inventory is expensive. You not only need to pay to rent storage but also on tracking and maintaining inventory levels and keeping it safe. You will have to spend a lot of money to buy a high volume of inventory which is stuck for a long time. Assurance of Profit If an MOQ is set, orders are at the lowest amount after calculating the profit and it will not affect the inventory and transportation cost. This gives the business a guaranteed profit margin. Benefits for Buyers Increase in Savings When a seller saves money while selling a product, the effects trickle down to the buyers as well. This makes the end customer receive discounted prices from a seller who effectively manages inventory levels using minimum order quantity. Fresher Inventory A buyer buying products from a seller who follows MOQ will get fresh items because the seller stores the least amount of inventory that is needed. Steps to Implement Minimum Order Quantity (MOQ) Every idea, if tried and tested, can yield promising results compared to carrying out ideas that have not been researched. So for MOQ, these are the steps to achieve a better output. Calculate the Target MOQImplement the MOQ Calculate the Target Minimum Order Quantity This is the most essential thing to do while implementing minimum order quantity. You cannot purchase a lot of items and keep your inventory stocked with just those products. If these items are not going to get sold shortly then: There will be less space in your inventory to store other items.Your money will be stuck until the products are sold.The products could get expiredThe value of the products gets loweredThey start to need more maintenanceCosts will accumulate with time So for an easy check on this, you can take the following precautions: Figuring Out Demand Forecast the demand that you will need to fulfill in the future. Adjust your minimum order quantity per seasonal demands, the nature of the products, etc. Calculate the Break-Even Point Know the break-even point of a single product before you place an order in bulk. Consider All Possible Costs You must calculate all the costs associated with different minimum order quantity levels such as holding and transportation costs. Some products are expensive to store depending on their size, duration of storage, and special storage conditions. (e.g., fruits, vegetables) Implement the Minimum Order Quantity After all the trouble to calculate the right minimum order quantity, implementing MOQ is also a major task for the buyer. While implementing the MOQ, you may need to rent a warehouse, secure it, connect it to logistics partners, keep track of it, keep updating it, and add services like branded shipping, dropshipping fulfillment, etc. to it. You can also partner with a third-party fulfillment provider who will take care of all these things and give you extra benefits like multi-warehousing with MOQ, access to high-tech inventory management software, connections to more courier aggregators, RTO indicators, etc. Conclusion: Successfully implementing Minimum Order Quantity with WareIQ in 2023 As you we have discovered, MOQ is important for eCommerce players who are maintaining multiple shops at a time on multiple selling platforms. They have a lot of things to focus on. Instead of micromanaging things that will consume all of their time, they should focus on other important aspects and manage the business. WareIQ can be a solution for this. It provides you with the facility of multiple warehousing or fulfillment centers in different locations.You get an actual count of your inventory before initiating MOQs.You will have to spend less on warehouse (inventory) management after MOQ.It sends you a reminder for low inventory.It eases your holding capacity for a long time.It lowers your freight rate by placing your inventory near areas of high demand.It helps you to find the best logistic partner to make your fulfillment hassle-free.It enables you to promise your customers same-day and next-day delivery.It has features such as RTO Shield to prevent high costs associated with product returns. WareIQ offers sellers a full-stack platform. They also offer fulfillment centers near the recipient, which is something that not every eCommerce company can do. To save time, you can obtain all of your logistical needs in one place: inventory management, shipping orders, customer delivery concerns, and performance analysis. To enable firms to offer two-day deliveries, WareIQ maintains a network of fulfillment centers across India. They also collaborate with third-party companies to assist in the operations of their services, such as last-mile delivery. WareIQ handles issues that arise during order fulfillment, such as damaged or lost inventory, and responds immediately to provide a positive customer experience. To keep your cash flowing, they offer COD remittance twice weekly. Finding the most efficient and dependable choice for your delivery, as well as managing returns, are all taken care of. Minimum Order Quantity (MOQ): FAQs (Frequently Asked Questions) What does a minimum order mean?The smallest amount of a product that can be ordered in one delivery, usually to spread shipping expenses across a reasonable number of units, is known as the minimum order. We do not have an MOQ, and all of our wholesale products are sold in modest pack sizes through advanced shipping services. How do you find the minimum order quantity?There is no such formula for calculating it. MOQ depends on various factors like the size of the business, type of business, nature of the product, season for sale, and much more. What is MOQ in Supply Chain?The minimum order quantity, or MOQ, is the smallest order size that a supplier will accept. The smallest number of units is frequently used. Suppliers can, however, specify the minimum order quantity based on the order value. What is the purpose of MOQ?The goal of minimum order quantity is for suppliers to maximize their earnings while simultaneously getting rid of more inventory and weeding out "discount shoppers." What is EOQ & MOQ?Economic Order Quantity (EOQ) is a formula used in inventory management to calculate the optimal order quantity for a particular product. It takes into account the cost of ordering, the cost of holding inventory, and the demand for the product. The goal of using EOQ is to minimize the total inventory costs, which includes both the cost of ordering and the cost of holding inventory.Minimum Order Quantity (MOQ) is the minimum quantity of a product that a supplier is willing to sell to a customer. MOQs are often set to ensure that the supplier can produce or procure the product at a cost-effective price point. For example, a supplier may have a higher production cost for smaller quantities, and so may set an MOQ to ensure that they can cover their costs and make a profit. MOQs can vary depending on the product, supplier, and market conditions. How do you fix the minimum order quantity?If you are a buyer there is typically nothing that can fix the minimum order quantity (MOQ) set by a supplier. However, there are a few strategies you can use to try to negotiate a lower MOQ or find ways to work around it:1. Negotiate with the supplier: If you are a valuable customer or can demonstrate that you have a significant demand for the product, you may be able to negotiate a lower MOQ with the supplier.2. Look for alternative suppliers: If the MOQ set by your current supplier is too high for your needs, you can research other suppliers who may offer a lower MOQ.3. Group orders: Consider combining orders with other buyers to reach the supplier's MOQ. This strategy can help you save on shipping costs and reduce the overall cost per unit.4. Adjust your purchasing strategy: You can adjust your ordering frequency or the quantity you order each time to work within the supplier's MOQ. This strategy may require some planning and forecasting, but it can help you avoid overstocking or tying up too much capital in inventory.
February 25, 2023
What is Pick and Pack Fulfillment Service in eCommerce? A Detailed Guide on Warehouse Pick and Pack Processes in 2023
It is a known fact that selling is not an easy task and when it comes to online selling, retailers need to make a lot of effort to sell a product. You could create a website or go on multiple channels, list products, take care of doorstep delivery, and a lot more. Among all the selling processes, order fulfillment is one of the most important tasks after a buyer places an order. Receiving and sending orders entails a complicated set of interconnected procedures known as Order Fulfillment. In the process of fulfilling an order, storage, picking, packing, distribution, and receipt of the product by the customer are the important stages. Pick and pack fulfillment services are one of the earliest and most crucial stages in order fulfillment. It not only guarantees that the product can be sold to the buyer’s preferred location but is also useful in branding, marketing, and tracking the product. This article will introduce you to the principles of pick and pack fulfillment, pick and pack warehouses as well as show you how to handle picking and packing process. What is Pick and Pack Fulfillment Service in eCommerce? An online seller, after receiving an order on their website or another channel, sends an order confirmation message to the customer and then initiates order fulfillment. In the order fulfillment process, eCommerce pick and pack warehouse fulfillment is the earliest process that a seller initiates. As the name pick, pack, and ship fulfillment suggests, it is the process where ordered products are picked and packed, following a standardised process. In a fulfillment-providing company, the supply chain must be streamlined with picking and packing fulfillment to reduce logistics costs. Picking is choosing the appropriate product from storage, in the least amount of time, after an order has been placed. Dedicated companies that provide picking and packing fulfillment, have a sophisticated way of doing it. It is further classified into piece picking, batch picking, zone picking, and wave picking. Packing is placing the things in the correct sized box with the proper packaging materials to ensure that they arrive at their final destination unharmed and at the lowest possible cost. Packing should involve efficiently placing orders within the fewest number of boxes, putting packing slips, and using the right type of packing material(s) for each product to reduce shipping costs and maintain order accuracy. Many warehouses include a warehouse management system (WMS) that can assist in determining which box is the best fit for the order at hand. Source [contactus_lilgoodness] What are the Methods of Pick and Pack Fulfillment services? Methods of pick and pack fulfillment may vary depending on the size, location, tie-ups with fulfillment centers, registration on different selling platforms, etc. A seller can change the picking and packing styles as per business requirements. Here are the standard pick and pack logistics fulfillment methods and strategies that most companies do to fulfilling orders. Piece picking method In this method of pick and pack fulfillment service, a single product is picked and sent for packing and further processes. The retailer’s pick-and-pack fulfillment partner picks the order from the seller's shop, warehouse, or fulfillment center and initiates the order fulfillment process. Mostly piece picking is done by small businesses, luxury or heavy product sellers. For them, piece picking is the easiest pick and pack logistics method. Batch picking method The batch-picking method of pick and pack fulfillment service is an organized way of consolidating numerous orders to deliver to different locations. It is done, once a seller receives orders in large numbers. The orders are picked up in batches according to the pick-up location of the fulfillment center and the location of the customer. You can have a single SKU for several orders, it makes sense to bundle those orders together which will save time and resources. It is also done by small retailers, once they get a good amount of orders. Zone picking method In this method of pick and pack fulfillment service, objects are picked up zone-wise and later transferred to another zone till it is delivered. It requires a strong fulfillment network, complex coordination, and technology to achieve the most accurate results by the fulfillment center. Zone picking will need a good pick and pack Warehouse Management Software to handle and automate all the complex processes involved. Wave picking method It is a combination of batch-picking and wave-picking methods. Here, a person arranges the batches of products according to their zonal movement. Then they transfer the batches to the respective delivery personnel in different zones. These days, most of the good fulfillment centers are doing the same. It saves time, energy, and cost. What are the Benefits of Pick and Pack Fulfillment Services for eCommerce Businesses? Suppose you are an eCommerce seller and do multi-channel selling, you get orders across the nation, and you can fulfill hundreds of orders in a single day. While focusing on your core work of selling, you will have to take up a new responsibility of pick and pack fulfillment and also keeping track of hundreds of orders. You will need dedicated resources and capital for it. You might not be able to solve disputes across the country, so this is where pick and pack warehouse fulfillment companies can help. They will store your inventory in their fulfillment centers. From the fulfillment centers, they will pick, pack and transport it to a shopping aggregator or courier service provider, which will then distribute it to the final location. In case you are a small seller, you can focus on the core aspects of your business such as expansion, marketing, development of new products and refining existing ones, instead of spending time and resources fulfilling orders miles away from your shop or godown. The benefits of pick and pack fulfillment through the pick, pack, and ship services are listed below: Fulfillment of orders 24x7: A seller through online selling sells 24x7 so they should also have access to pick, pack, and ship services fulfillment 24x7 for faster delivery and customer satisfaction. Pick, pack, and ship services receive, pick, and pack items around the clock. Access to branded packing: Most fulfillment companies provide branded packing services that help you with customized packing. It saves you the cost of packaging and transportation and also the hassle of trying to make your packaging appealing to attract more customers. Transportation to the best courier service: To make pick and pack eCommerce fulfillment a better experience for both the seller and their customers, these pick, pack, and ship services drop off the ordered items to the best logistics providers and courier services in a certain delivery area. They have enough experience to know who offers better delivery service in that area/city/state/region where orders need to be shipped. Customized pick and pack fulfillment service methods: Orders are picked and packed after analyzing and bifurcating the ordered items according to their demand and estimated delivery time. They use the wave-picking method which saves cost, time, and energy. Professional fulfillment staff: These pick and pack fulfillment companies are professionals in the field of pick, pack, and ship services and order fulfillment. They have a number of solutions for any mishap that could occur and contacts to resolve them in the shortest amount of time possible and at the cheapest rates. WareIQ's Reverse Logistics Enhanced reverse logistics: After selling the product, companies need to have a comprehensive reverse logistics service in place in order to combat any wastage that could occur. Pick and pack fulfillment services take care of the entire reverse logistics process. Why Should You Choose a 3rd-Party Pick, Pack & Ship Service? In the era, where multiple unicorn start-ups are mostly outsourcing resources, there is a huge demand for pick, pack and ship services. Oyo outsources rooms, Ola outsources cars, etc. So the idea here is to not get stuck in micro-management and distract from the core task. Some services which you are able to outsource to pick and pack logistics fulfillment companies are: Branded Shipping Branded shipping is the shipping of a product by a seller to the buyer’s address which includes packing, packaging slips & shipping labels, sending order confirmation messages with tracking details, highlighting product presentations and adding various personalized touches. It is an opportunity to brand your business which can be done by an expert to reiterate the proper message to the target MQLs that may become SQLs in the future. WareIQ Branded Tracking Technology and automation Pick and pack businesses use cutting-edge technology and have well-trained service teams to provide high-quality, professional pick and pack fulfillment services among much more. Most pick, pack and ship services provide access to an online management system that allows you to monitor, authorize, and cancel purchases that are submitted by your company at any time. Order fulfillment Pick and pack fulfillment service providers are experts and equipped with high-tech devices, and software to mitigate any errors in the order fulfillment process. They pick items in batches, according to various metrics which makes it more accurate when transferring goods from one place to another. They also use dedicated vehicles customized according to the product size, area of delivery, freight charges, and much more. Multi-channel selling If you are a multi-channel eCommerce seller, choosing a pick and pack fulfillment service partner is beneficial from your business’s point of view. They provide multiple options to you such as custom picking and packing where all the sales done on multiple platforms can be fulfilled from the same location and packed in a customized manner according to the requirements of the channel. Streamlining processes Because a pick and pack fulfillment service company’s major duty is to execute the supply chain in the most efficient and cost-effective way possible, there are fewer distractions for them and their employees, as well as other obligations that get in the way. When organizations have to manage major processes themselves, it isn't usually the case because individuals are continually pushed in different directions. The supply chain can be reconfigured considerably more readily if required. Pick, pack, and ship services are knowledgeable about the most recent technologies and procedures, as well as the full process from start to finish. This is especially useful if there are any problems or unexpected events along the way. A 3PL pick and pack fulfillment service can put your mind at ease if you're unsure about the capabilities or requirements of your business. Assistance and scalability Scalability refers to a company's ability to handle increasing workloads and the potential for expansion. The capacity to alter space and labor based on inventory and products is another advantage of employing a 3PL fulfillment company. Many pick and pack logistics companies have deliberately established facilities throughout the country to ensure efficiency and nationwide delivery at low prices that enable higher profit margins. This can lead to a re-engineering of distribution markets, which might be a blessing in disguise during periods of rapid expansion. Reverse logistics Pick and pack fulfillment cannot be completed without a return policy. Pick, pack, and ship services are done by dedicated fulfillment companies. In case of a return, they will have to perform all the similar steps in the regular supply chain, but in reverse. If a bad delivery is a bad experience for a buyer then a bad return is similar for a seller. What are the Main Points to Consider While Choosing a Pick and Pack Fulfillment Service in 2023? Hidden Fees & Additional Costs You are in a business so you have to record the expenses. Before you choose a fulfillment partner for order fulfillment, you should know all their terms and conditions. Read twice about the minimum fee, storage costs, and pallet fees are all possible fees. Inquire about fees and compare them. Also, keep an eye on any hidden costs. Knowledge About Your Pick and Pack Fulfillment Partner Visit the warehouse of your potential pick and pack fulfillment service if at all feasible, or at least contact prior and current clients to learn more about the company. Pay attention to your encounters with them; the way they respond to you will most likely be similar to how they respond to your clients after you start working with them. Also, request a demonstration of any systems that will be used. Before committing, it's a good idea to thoroughly understand their skills. Contract Duration Check their terms and conditions regarding the duration of the contract they are offering. If you want a long-term contract then how long they can offer a partnership contract with you would be important and in case you do not feel like continuing with them then how easily can you discontinue the contract is just as important. Prior Track Record Always check online for any positive or negative evaluations of your potential pick and pack fulfillment service. It is always a good idea to get a sense of how other vendors and customers feel about a firm before committing. Check how long they have been in business and other metrics such as prior mishaps and how they were handled by the company. Handling Bad Situations A business is always accountable. Before going ahead with a pick and pack fulfillment company, it is important to know what the company's procedure is if your product gets misplaced, whether they keep track of damaged goods, and how often they count them. There should be full transparency between you and your pick, pack and ship fulfillment service. Software and Technology Check to see if your potential pick and pack fulfillment service has a reliable warehouse management system (WMS), if they can link to your sales channels to automatically retrieve orders, and can provide real-time data. It should all be automated by technology and all the information about your products in the warehouse or the process of fulfillment should be at your fingertips. It will help you to be answerable to your customers directly. Conclusion: Should You Outsource Your Pick and Pack Fulfillment Service Needs? When you grow as a business, you start delegating the work to your manager, supervisors, and other employees. You hire experts with years of experience in certain fields, so similarly, you should do the same with your company’s requirements. You need to choose a cost-effect pick and pack fulfillment company for all your eCommerce shipping and eCommerce warehousing needs. They provide adaptable solutions for organizations of all sizes. If your firm is short on space, manpower, or time-related resources, a pick and pack fulfillment service company can relieve tension while also saving you time and money, all of which affect your bottom line. Examine your alternatives and select the one that best suits your company. WareIQ has emerged as one of the trusted Order Fulfillment companies equipped with all the resources in pick, pack, and ship services, warehousing, logistics, and much more. Established in 2019, WareIQ, a Y-combinator-backed startup, has rapidly grown to be the leading full-stack eCommerce fulfillment company for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ manages the entire range of complex operations in the eCommerce fulfillment process, such as inbound functions like scanning and quality check, 100% accurate Pick and Pack, and inventory management across all channels, with a centralized platform for core fulfillment and shipping operations and post-shipping apps for a delightful experience and zero to minimal supply chain leakages. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfillment centers, micro-fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile courier services at discounted rates for making same/next-day deliveries possibleEasy integration across multiple online platforms & marketplaces enhancing multi-channel sellingHorizontal marketplaces: Flipkart, Amazon, etc.Vertical marketplaces: Nykaa, Myntra, etc.D2C platforms: Shopify, Magento, WooCommerce, etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfillment & shipping operationsPost-shipping apps for a delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack fulfillment service, to Inventory Management across all channels. At the same time, WareIQ customers realize significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision-making. WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Pick and Pack Service FAQs (Frequently Asked Questions) What is the meaning of a pick and pack service?In the order fulfillment process, pick and pack is an important stage. All items in a customer's order are first picked (collected) from their respective storage locations. Following that, the things are packed (packaged) and are then ready to be shipped to the consumer. How do you define pick and pack warehouse?Warehouses have inventory stored that will be picked and packed as soon as an order is placed. What is the meaning of pick and pack fee?The fee associated with picking a piece of inventory out from a warehouse and packing it for shipment is called a pick and pack fee. How much do the Pick and pack warehousing services cost?The cost of pick and pack warehousing services can vary depending on several factors, such as the volume of orders, the complexity of the items being picked and packed, the location of the fulfillment center, and the level of automation used in the process.Generally, pick and pack services are priced on a per-order basis, which means that the more orders you have, the lower the cost per order. Additionally, some fulfillment centers may charge additional fees for storage, inventory management, shipping, and other value-added services.To get a better estimate of the cost of pick and pack warehousing services, it's best to contact a fulfillment center directly and provide them with information about your business, products, and order volume. They can then provide you with a customized quote based on your specific needs and requirements. To get a quote for WareIQ, check here. What other services does WareIQ offer?Apart from picking & packing products in WareIQ’s fulfillment centers, WareIQ offers full stack fulfillment services to eCommerce businesses, starting from cold storage facilities, customised packaging, access to tech platforms with easy integrations with 20+online marketplaces & platforms, ML-based inventory forecasting, analytics, order tracking, shipping & last mile delivery, post shipping apps like RTO insurance, weight lock, customer feedback, branded tracking, etc. In shipping, what does pack mean?Before the product is labeled and dispatched to the end consumer, the items are packed i.e. items are placed into the proper box, together with the packing materials and documentation. What is the difference between picking, packaging, and shipping?In fulfillment, "pick, pack, and ship" are the three essential steps that take place in the order fulfillment process. Here are the differences between the three:Picking: This refers to the process of selecting the ordered items from the inventory and bringing them to a designated area for packing. Picking can be done manually by a person who walks around the warehouse or through automation, such as using robots or conveyors.Packing: This refers to the process of preparing the picked items for shipment. It involves putting the items in the right box or container, adding protective materials like bubble wrap or packing peanuts, and labeling the package with the shipping address and other necessary information.Shipping: This refers to the process of handing over the packed and labeled package to the carrier for delivery to the customer. This can involve arranging for a shipping service to pick up the package from the fulfillment center or drop it off at a designated location.
February 25, 2023
10 Best WMS Softwares (Warehouse Management System Softwares) Along With Pricing and Reviews for WMS Solutions in India in 2023
Have you ever thought about the complexity that a selling platform like Amazon, Flipkart, eBay etc. faces while selling products? Billions of items, millions of buyers, and thousands of variety of warehouses, employees, and machines. Because of the sheer scale, it is extremely difficult to manually manage all these processes. This is where WMS software can play a big part in increasing efficiency and mitigating errors. In the last 4 to 5 years, WMS software has emerged as a multitasking tool for industries. You may know about the Internet of Things (IoT) which has made eCommerce warehousing and inventory relatively easy to manage. If you are an online seller that is willing to sell across multiple channels for growing your business in the virtual internet market, you need to choose WMS software to run things smoothly. What is a WMS (Warehouse Management System) Software? Warehouse Management System (WMS) Software is a new-era software solution used by eCommerce businesses to manage their entire inventory and supply chain fulfillment operations from the distribution centers to the store shelf/warehouse. When the inventory levels and workload are higher than what can be handled manually with spreadsheets, WMS solutions are employed by enterprises to meet the unique customer demand requirements of their supply chain and distribution channel. It assists warehouses and fulfillment centers in planning, organizing, staffing, directing, and controlling by utilizing the available resources to move and store materials into, within, and out of a warehouse. It also aids employees in the movement and storage of materials in and around the warehouses. WMS software is used to keep track of warehouse activities from the moment products are delivered to the moment they leave. Inventory management, picking processes, and auditing are among these operations. The solution aids in the reduction of lengthy paperwork involved as well as the reduction of human errors caused by storage processes and manual picking. As a result, you will save time, which will increase staff productivity, and efficiency and lower operational expenses. [contactus_lilgoodness] What are the Features of WMS Solutions? Inventory Management and Analysis Many of the top WMS solutions include capabilities that enable businesses to gather data from warehouse operations. Companies benefit greatly from real-time tracking, especially when it comes to inventory management. This allows you to check your inventory levels in real-time, so you'll always know whether you're running out of anything or have too much stock in hand. Other tools may filter data for KPI analysis, emphasizing areas where improvements are needed. Warehouse management software determines what is happening in a warehouse and where attention is required. Collecting high-quality data assists decision-makers in determining whether or not to make changes to important business processes, as well as in planning for the future. Accurate and effective inventory tracking is one of the key advantages of RFID-integrated WMS. Individual items or entire pallets can have RFID (radio-frequency identification) tags affixed to them, and RFID scanners can automatically read the tags. Without the need for manual scanning or data entry, this enables warehouse employees to track the location and movement of inventory rapidly and accurately. Tracking and Forecasting This feature helps to increase customer satisfaction. A buyer before placing an order, checks the serviceability of their location and when it will be delivered. After placing an order, they get an estimated time of arrival (ETA) and can keep track of their order shipment. Sellers also track the order and can identify and correct any delays that crop up. Due to the WMS's ability to detect differences between the physical inventory and the digital record, RFID-integrated WMS can also aid in minimizing the chances of mistakes and inconsistencies in the warehouse. In addition to improving order tracking, RFID tags are used to trigger automated putaway and replenishment of SKUs, reducing the time and effort required for these tasks. Order and Fulfillment Management One of the primary WMS software functions is order and fulfillment services process optimization. WMS solutions help to improve order management by regulating the movement of a product through your warehouse. Users can utilize reorder features to automatically order components or products that need to be replenished on a regular basis. Some WMS solutions give users access to carrier networks, which can help them expedite branded shipping. Warehouse managers can eliminate time-consuming human input chores as automation integration becomes more common. Incorporating robotics, artificial intelligence, and machine learning into WMS systems can significantly improve efficiency and speed. Picking robots can locate and move things without requiring workers to run back and forth between product and shipping regions. Transportation Management Though transportation management can be considered a different category in and of itself, WMS software frequently includes transport management system (TMS) functions. As an integral aspect of supply chain management, TMS software can directly affect and improve warehouse management. If you require transport management facilities, consider seeking a WMS software that includes it. Labor Management WMS solutions aid warehouse managers in monitoring worker performance through the use of key performance indicators. With this approach, workers who are doing poorly, as well as those who are performing amicably, can be readily identified. Warehouse Management System Software consisting of labor management can help identify your employees, keep track of their schedules, and assign duties to them. Employees can clock in and out using simple pins or fingerprints that keep track of their log-in and log-out time. What Businesses Would Be Best Suited for Warehouse Management Software? WMS software is enabled with several facilities and gets updated and becomes smarter day by day. It is used in many industries to make their tasks easier and automated. These days, every company is using it according to their business size and complications. It can be customized for various types and sizes of businesses. Some industries use WMS solutions on a very high scale to efficiently run warehouse management processes. Some of them are listed below: Manufacturing Source Manufacturing industries have complicated warehouse requirements which makes WMS software an important tool for them. They deal in several types of products, materials and packages of varying sizes, volumes, rates, etc. Also, these items have different manufacturing timelines which needs to be segregated into pre-existing goods and newly created goods, and WMS solutions help to ease the process. Wholesale Distribution Source WMS software helps wholesalers to manage their complex supply chain and maximize accuracy. It allows them to utilize inventory space with exact quality deployment, fulfill orders faster, and manage multiple warehouses, combining cross-docking and advanced picking features. Consumer Goods and Retail Source You can observe that these days, there are multiple grocery stores that have a daily shortage of inventory and have hundreds/thousands of orders to fulfill across one city or in multiple cities. This complex management, if handled by humans, will increase time usage and have higher chances of inaccuracy. WMS solutions make it simple, and smooth and utilize resources at their highest level of efficiency. Third-Party(3PL) Logistics Companies Source Warehousing is a crucial operational function for a 3PL because its business is to manage the eCommerce logistics and orders of its partners. As a result, a 3PL always uses advanced WMS solutions. Most WMS suppliers provide packages tailored to the complicated structure of a 3PL warehouse, which must keep a multitude of items, owners, vendors, and order systems, distinct and working. As they are in the business of eCommerce fulfillment, they use technology according to their partners’ needs, work models, and functionality by giving them personalized service. The 3PL can deliver reports and metrics of their sales, orders, inventory, etc, using WMS software. Customers can also manage data by generating customer-specific dashboards. Hospitals and Health Care Source This industry does not have a large inventory or a huge number of orders to fulfill although there are several factors like special storage conditions, a limited shelf life, requirement for 100% accuracy, ultra-fast delivery etc. and if any mistakes occur, it could result in the loss of lives. Here a single piece/item can affect the reputation of a seller, manufacturer and any person related to it. What are the Benefits of WMS Software Solutions? Optimizes Space and Lowers Operating Expenses Warehouse Management System Software utilizes the floor space and reduces the amount of empty space. Through technology, it optimizes the area and the dimensions of products that are kept there. It keeps track of every item’s entry and exit and the actual space left in the warehouse. Material rotation can also be aided by WMS solutions, whether through First-In, First-Out (FIFO), Last-In, First-Out (LIFO), or First-Expired, First-Out (FEFO) procedures. The WMS software can assist with any rotation rule that is desired. LIFO allows for the most efficient utilization of space and mobility. Product quality can be maintained by using FIFO or FEFO to keep products from expiring in the warehouse. Increases Visibility of Inventory Warehouse Management Software enables sellers to have an exact count and check inventory levels. It shows in real time, the product count, colour, size, holding period, etc. Features in WMS software to calculate the MOQ and EOQ can help sellers to predict when they will be short of inventory so that they can reorder again with the minimum inventory cost. Increases the Effectiveness of Labor A big or a small business should always take care of the utilization of its resources in the best possible way. The WMS software helps you gauge the potential of your workforce, keep them involved in the right direction and evaluate them on a day-to-today basis and throughout working hours. Optimizes the Supply Chain The WMS software can suggest the nearest warehouse to either the manufacturing unit or areas of high demand if a seller is using multiple warehouses. It optimizes and tells the seller about cross shipments to reduce logistics cost and timing. This helps in segregating the product batch right from picking and packing to the last mile delivery option. A better supply chain will give a more personalized touch to the buyer at the same time. Auditing of Internal Automation You as a businessman always need to keep auditing your business and also compare it with others or yourself in different periods. Due to lack of time and resources, you may do it once in a while but with WMS solutions, you can easily do a holistic audit of your business regardless if it is tangible or intangible. 10 Best WMS Software for eCommerce Warehouse Management in India [Updated March 2023] WareIQUnicommerceIncreffNetSuite WMS (Oracle)Fishbowl Inventory3PL Warehouse ManagerVin eRetail WMS (Vinculum)QuickBooks Commerce (formerly TradeGecko)SAPTECSYS WMS WareIQ Source WareIQ empowers eCommerce businesses with fulfillment centers near customers and tools to maintain control over inventory, orders, and pre & post fulfillment, in a single platform. It is led by experts that are experienced in working with eCommerce giants. It provides insights on the right network design & inventory placement to improve inventory returns and increase regional fulfillment share. WareIQ’s WMS software offers a 360-degree Analytics Engine for Business Growth. Data shows that brands that partnered with WareIQ surged tenfold annually in terms of order volume growth. It has been possible because of smart inventory planning with high-end technology using AI, ML, and IoT. With the extended version of WMS software, sellers can manage high-volume warehouse operations with integrated complex supply chain logistics and keep eye on all the warehouse KPIs. It also helps in their warehousing and distribution processes, delivering high levels of efficiency, control, and visibility. Key Features of WareIQ: Easy integration across multiple online platforms & marketplacesML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfillment & shipping operationsBranded TrackingRTO ShieldBest Courier Partners to Optimize LogisticsCustomer FeedbackShipping BadgesScan-based GRN to assure 100% accuracy Pricing Sign Up Now with WareIQ to know the platform pricing to accelerate the sales of your eCommerce business. WareIQ's WMS is a part of their unified fulfillment tech platform where you can efficiently manage warehouse operations, orders, inventory levels etc from a single platform. WareIQ offers the best price and services to its clients when compared to other WMSs available in the market which don't provide a unified experience. Unicommerce Source Unicommerce's advanced WMS software recognizes the dynamism necessary in a warehouse solution, whereas conventional warehouse management software merely handles the stock location and stock level of commodities in a warehouse. Unicommerce helps you: Centralize the critical functions that are required in omnichannel retail situationsMaintain healthy stock levels and ensures location-allocation in numerous warehouse sitesManage 6000+ warehousesAutomate purchase management while tracking and routing shipments. Pricing Unicommerce has 3 pricing plans as per business type: Standard: Suitable for micro-businesses with a minimal need for automationProfessional: Suitable for companies in the growth phase looking to improve their operating capabilitiesEnterprise: Suitable for enterprises looking for a WMS with full-fledged features Pricing isn't transparent on the website and you would have to book a call with their sales team to know the exact price. Unicommerce's pricing plans are based on various factors like no. of SKUs, returns management, user roles, payment reconciliation methods, customer/API integration, vendor management capabilities etc. Increff Source Increff is a simple and efficient web-based multi-channel order fulfillment and WMS software. It’s WMS solutions provides a single view of inventory across all marketplaces and seamless management of orders. Increff provides the following services: Handles manpowerEasy OperationsBuilt for scale100% scan based with unpaid principal balance integration for complete trackingMulti-system integrationSingle window for end-to-end operationsWMS deployed remotely in less than 7 days Pricing Increff's pricing is not mentioned on their website. However, as per Capterra, Increff's pricing model is usage-based and payment frequency is per month. NetSuite WMS (Oracle) Source Industry-leading methods such as mobile RF barcode scanning, specified strategies for storing items, job management, last mile delivery management, return authorization receipts and inventory cycle count plans are all part of the NetSuite WMS software solution. If you rely on spreadsheets to manage hundreds of SKUs across numerous sites, warehouse management may soon become a laborious, messy, and wasteful operation. A few of the benefits are listed below: NetSuite WMS eliminates manual processesIt helps you to minimize logistics costsTracks the entry of goods, the movement of workers inside the warehouse, and their exit in real-timeScan barcodes using a mobile device to simplify entering dataMakes the best use of available space and choose the best storage options with easeIncreases opportunistic multi-order picking and pick path efficiencyReduces wrong selections and inaccurate fulfilment by validating the data Pricing On its website, Oracle NetSuite doesn't provide a list of fixed prices. It varies depending on the product configuration that your business chooses, the add-on modules needed, the number of users overall, the length of the contract, and the requirements unique to your industry. As per Business News Daily, prices for Netsuite WMS start at $99 for a monthly subscription, but the total price will depend on the solution you want. Implementation of Oracle NetSuite WMS has even higher charges with costs going up to a few thousands of dollars. Fishbowl Inventory Source With Fishbowl Inventory's WMS, you can get complete visibility into your production and warehouse activities, simplify interconnections, and expand your company - in weeks, not months. It has a unified platform to manage manufacturing, warehousing, and inventory processes. When you order new products, Fishbowl’s WMS immediately generates a Purchase Order and bills it to QuickBooks. A few features are listed below: Ability to scan things into your warehouse with a wireless mobile deviceEnables you to store them in their designated location in your warehouseAllows you to create several work orders and bills of materials for complex jobsEnables you to choose things from your shelf, pack them and ship them to the customer when a sales order is received.After the transaction, Fishbowl sends an invoice to QuickBooks, which is updated with all the financial information. Pricing As per Fishbowl Inventory's website, there are 3 pricing plans as per the product features you choose. Go (coming soon)DriveAdvanced Various product features listed on the pricing plans are monthly/annual billing, warehouse management, inventory management, integrations, payment processing, dedicated account manager etc. 3PL Warehouse Manager Source 3PL Warehouse Manager’s entire staff is dedicated to developing supply chain WMS software based on the best practices of 3rd party logistics, with over a decade of experience working with top-performing 3PL facilities. One of the most popular cloud-based WMS solutions, 3PL Warehouse Manager makes it simple for warehouses to manage inventory, automate regular processes and provide total visibility to their clients. Some features are: The WMS system swiftly transforms paper-based 3PLs into service leadersAllows operations to be done more efficientlyIs trusted by over 1,500 3PL warehouses to help them build their businesses. Vin eRetail WMS (Vinculum) Source Vin eRetail delivers a one-stop solution to all of your marketplace listing-related difficulties through its WMS software. It allows users to digitally upload catalogs i.e helping in catalog management for numerous marketplaces by providing import templates tailored to each portal's needs. It provides the following services: Category-specific templates for uploading all product-related information to a single siteUser-friendly; helps users to view each item and its details and choose which marketplaces to list the item onPreparation to upload templates particular to each marketplace Their basic plan includes these features: Maintenance of master data with cloud storage7 possibilities for real-time payment and inventory reconciliationAnalytics dashboard for salesGST-compliant reportsReport on a monthly business analysisConsultation on dispute resolutionChat and email help Pricing As per their pricing page, Vinculum has an elastic pricing model that has 2 types of plans which are further divided into tiers. Vin Reco Past: This plan has a one time past reconciliation of 17,999 INR. In this plan, you receive a package of scenario-based reconciliation reports for the previous months (recoverable and non-recoverable leakages identified). Various payment and inventory scenarios are included in this plan.Subscription Plans: This plan is further divided into 3 tiers. It can be billed monthly or annually, in which you save 10% if billed annually.Vin Reco Express: Starts at 7,499 INRVin Reco Professional: Starts at 17,999 INRVin Reco Enterprise: Starts at 29,999 INR QuickBooks Commerce (formerly TradeGecko) Source It is a powerful eCommerce platform for multiple channels and wholesale businesses specializing in B2B sales models. It offers: Multiple inventory control and tracking featuresSeamless integration with Amazon, Shopify, Magento, ShipStation, WooCommerce, etc.Forecasts demand and generates purchase ordersCustomer insights, forecasting and reportsMultiple catalogs options and price lists with individual discount options Pricing There are a total of 4 plans available for QuickBooks Commerce, and based on your needs, you may choose to pay annually or monthly. You will receive a small discount for making annual payments, typically up to 20% off your subscription. An annual purchase is typically a wise decision if you don't mind being bound into the same program for a time. The plans are mentioned below: Founder: Starts are USD 39$ per monthLite: Starts are USD 79$ per monthSmall Business: Starts are USD 199$ per monthBusiness: Starts are USD 599$ per month The fact that each QuickBooks Commerce pricing plan includes a free trial is another crucial point to keep in mind. You can evaluate the services that QuickBooks Commerce can offer throughout the 14-day free trial period before spending any additional money. Source SAP Source SAP has flexible WMS software where a seller can manage a high volume of goods and run agile operations with digitized and accelerated warehouse processes. Its key features are: On-premise and cloud deployments Comprehensive WMS solutionsFully integrated quality, production and track-to-trace processesReal-time control of warehouse automation equipment Pricing SAP EWM for SAP S/4HANA Cloud's pricing is communicated on request. It isn't available on their website. They also have a disclaimer on their pricing page that "pricing information is subject to change and should not be considered an offer by SAP or its affiliates." Users can also ask for add-ons features for the WMS whose pricing might further increase. The benefits of those add ons are: SAP S/4HANA enterprise warehouse management via cloud deploymentrunning with a variety of corporate management systemsMost rapid time to value for new implementationsIntegrated warehousing solutionProcesses for quality, production, and tracking are completely interwoven TECSYS WMS Source Tecsys is a global supply chain solutions provider. It is growing with industry-leading services and tools to achieve operational greatness. It was incorporated in 1983 with its headquarters in Montreal, Canada. It has 600+ customers. It features a cloud-based system, the best system for medium and large organizations. It’s WMS software has received the Technology Innovation Leadership Award. Some of its features are: The streamlined inbound and outbound flow of InventoryWarehouse resource optimizationOpen and flexible automation connectorsEasy deployment and onboardingControl in transportation managementFIFO and batch control Pricing According to the kind and scale of the warehouse(s) to be handled, Tecsys WMS is a standard programme with three standard settings for webshops, wholesalers, and 3PLs, respectively. Pricing hasn't been mentioned explicitly on the website. However, various parameters considered in pricing are mentioned below: License/Subscription Cost: On-premise or cloud-based SaaSMaintenance CostImplementation/Installation CostData Migration/Change Management CostRecurring/Renewal Costs Conclusion: Why is WareIQ’s WMS the best Warehouse Management Software for eCommerce Fulfillment in 2023? After getting in-depth knowledge about WMS software and its functionality, you as a seller are at the point to choose your partner for warehouse management to get all the benefits and services and achieve growth in your business. It not only reduces the need for resources but also utilizes them to keep their performance on track, guiding them to work accurately. For such tasks, WareIQ has user-friendly Warehouse Management Software. Its WMS is customized and created for eCommerce businesses so that they can perform all warehouse-related tasks in a single location which reduces complexity. WareIQ acts as an aggregator for all businesses of all sizes and provides multiple benefits to its partners. Apart from the mandatory benefits that come under WMS software, it provides extra real-time features to their customers that help them in growing their business. A few of the unique benefits are: A single platform for multi-channel sales fulfillmentSmart picking and packaging servicesRTO Shield to reduce RTO expensesSmart MOQ & EOQ calculators for smart warehouses and multiple warehousesSmart inventory management WareIQ is one of India’s leading and fastest-growing full-stack eCommerce fulfillment companies that offers a variety best fulfillment services from same-day and next-day delivery, shipping badges, RTO Shield, state-of-the-art technological solutions such as our custom WMS and our intuitive, well-designed app store. We can take care of your brand's entire fulfillment requirements and ensure that you and your customers get the best order fulfillment in the country and have a hassle-free experience and raise satisfaction levels to new heights. [signup] WMS Software FAQs What are the common features people look for in a WMS software?People often look for the following features in a WMS software: Inventory Management, Order Management, Barcode Scanning, Real-time Inventory Tracking, Automated Data Collection, Warehouse Design and Optimization, Shipping and Receiving, and Reporting and Analytics. What are the compatibility requirements people look for in WMS software?People often look for WMS software that is compatible with their existing systems, such as ERP and e-commerce platforms, as well as any mobile devices and barcode scanning equipment used in the warehouse. What are the main benefits of WMS?By monitoring work processes at multiple levels, raising productivity and increasing asset utilization, the WMS will improve a company's operational efficiency for both labor and physical space. Inventory control is aided by WMS automation, which enhances accuracy, output, and speed. Which WMS software is best for warehouse management in 2023?Top 10 Best Warehouse Management Software Systems (WMS) In 20231. WareIQ2. Unicommerce3. Increff4. NetSuite WMS - Oracle5. Fishbowl Inventory6. 3PL Warehouse Manager7. Vin ERetail WMS - Vinculum8. QuickBooks Commerce (formerly TradeGecko)9. SAP10. TECSYS WMS What are the different types of WMS systems?Standalone systems, ERP modules, cloud-based systems, and supply-chain modules are the most popular forms of WMS. They all have different benefits for different warehouse needs. How is WMS pricing typically structured?Warehouse management software (WMS) is typically priced in one of two ways: as a one-time license fee or as a subscription-based service.i) One-time license fee: In this type of licensing scheme, the company just has to pay a single up-front cost to obtain the software. This charge might also cover the price of ongoing assistance, training, and implementation. The company is in charge of maintaining the software and handling any changes or upgrades.ii) Subscription-based service: A firm uses this pricing plan to access the software by paying a recurring cost, typically on a monthly or annual basis. The cost of hosting, upkeep, upgrades, and support may be included in the fee. Since the software is often offered as a cloud-based service, the company is relieved of the responsibility of installing and maintaining it on its own servers. How is WMS software usually deployed?Warehouse management software (WMS) can be deployed either on-premises or as a cloud-based service.i) On-premise model: In this WMS deployement model, the company's own servers and IT infrastructure are used to install and run the program. The company is in charge of the software's upkeep and updates, as well as supplying the infrastructure and hardware required to support it. Businesses that have the internal IT resources and know-how to operate the program, as well as a critical requirement for modification or integration with other on-premises systems, may find that on-premises deployment is a smart alternative.ii) Cloud-based SaaS model: In this method of WMS deployment, the business receives the software through a web browser that is delivered as a service over the internet. The vendor hosts and maintains the software, and the company is charged a subscription fee to utilize it. Businesses that need the flexibility to scale their use of the program up or down as necessary or who wish to reduce their IT infrastructure and maintenance costs may find that cloud-based deployment is a smart alternative.
February 10, 2023
Hybrid Fulfillment: Definition, Pros and Cons, Use Cases and How It Enables Faster Growth in eCommerce Sales in 2022
When an eCommerce company wants to make its selling process hassle-free, they primarily look toward a fulfillment company to streamline its supply chain process. Sometimes it is complex due to long distances or product types so a seller is expected to choose the delivery partner cleverly. Similar to other hybrid concepts, hybrid fulfillment combines two or more diverse things with one common objective to give you the best of both worlds which is fueled by a need to get order fulfillment for your online store in a more balanced way. Your selected fulfillment strategy must change and expand along with your online store. In this blog, we will learn the importance of hybrid fulfillment, the pros & cons associated with it, and how to apply it in your eCommerce business. What is Hybrid Fulfillment? As the name suggests, hybrid order fulfillment is a flexible and diverse approach (sometimes a mixture of both) to fulfill orders. Here, fulfillment models including in-house fulfillment, drop shipping, and/or third-party logistics are used in combination with each other to fulfill orders. This kind of fulfillment approach gives eCommerce companies more flexibility in how they manage their supply chains and order types, whether they are engaged in D2C or B2B eCommerce. Hybrid fulfillment services have been developed to meet the needs of retailers that are seeking hybrid order fulfillment by giving brands greater flexibility and more options to deliver orders to customers. This is similar to how businesses around the world have evolved into hybrid work models for partially remote and in-person environments. [contactus_gynoveda] Types of Order Fulfillment in eCommerce Dropshipping Dropshipping involves sending orders from a manufacturer or supplier directly to the end user. By using this fulfillment strategy, retailers are able to concentrate their time and efforts on other aspects of their business instead of worrying about inventory control or order fulfillment. It is a very hands-free approach that works well for firms that are just starting out or don't have the capacity to handle inventory on their own, despite being competitive and lacking some quality control and monitoring. In-House Fulfillment When a company manages the full order fulfillment process in-house, including picking, packaging, and shipping as well as inventory management and eCommerce warehousing, it is known as in-house fulfillment. Businesses who opt to handle order fulfillment in-house engage with personnel, invest in the necessary tools, and acquire the necessary space either in their own home or a rented warehouse to handle orders effectively. Businesses that desire complete control over their logistical operations and have the resources to handle it all themselves without sacrificing the customer experience should strongly consider in-house fulfillment. Third-Party Fulfillment A third-party logistics (3PL) provider handles fulfillment in this type of fulfillment strategy. Every step of the retail fulfillment process is handled by a company's 3PL partner, including warehouse receiving, inventory control, storage, picking and packing, and shipping. Fast-growing firms in the D2C and B2B sectors can entirely entrust the fulfillment process to professionals by outsourcing fulfillment service to a third party to accelerate eCommerce and D2C growth. Hybrid Fulfillment Hybrid order fulfillment is utilizing a combination of the above-mentioned fulfillment strategies rather than depending primarily on a single channel. This strategy allows for a more resilient supply chain to satisfy the constantly shifting market demands while also promoting growth, giving eCommerce enterprises more flexibility. A worldwide eCommerce company might continue to employ in-house fulfillment for local shipments, rely on a 3PL to handle international shipping, and engage with a drop shipper for particular items in their product catalog. Businesses that are expanding quickly, provide a wide variety of products, cater to many markets with different expectations, and need a custom fulfillment solution to meet the needs of both the company and its clients may consider hybrid fulfillment such as outsourcing fulfillment of fast-moving products and fulfilling rarely ordered SKUs themselves, only fulfilling regional orders themselves, and offloading the rest to another form of fulfillment. Benefits of Hybrid Fulfillment Provides a Variety of Delivery Options A hybrid fulfillment strategy will let you provide customers with more delivery options. The fulfillment provider you choose will have its own delivery options and costs, using multiple methods with better options available for buyers to receive their orders. Since hybrid fulfillment involves using the best fulfillment method for every stage, deliveries become more quick and seamless as a result. Increases Fulfillment Speed A large number of warehouses across the nation or in other countries is probably unaffordable. You can increase the number of fulfillment locations in your network by working with 3PLs. By doing this, you can provide inventory to potential customers wherever they may be. This closeness results in happier consumers and delivery timeframes that are frequently two days or less. Suggested Read: Choose the Type of Warehouse for Your Business Heightens Flexibility in Operations The flexibility that a hybrid order fulfillment strategy offers is arguably its greatest advantage. With numerous approaches, you can avoid getting stuck in a bad scenario. Your 3PL or dropshipping partners can still take care of a lot of your customers if you are unable to fulfill orders because you have run out of packing material or your warehouse is out of stock. If the increase in orders during a sale is more than you can handle, you can alter and assign more duties to a fulfillment partner. Hybrid fulfillment means you have more open doors to walk through to discover the ideal fit as your business expands and develops. And your spending habits reflect this flexibility. The hybrid strategy enables you to identify the least expensive solution for each circumstance and SKU. Reaches New Buyers You may be able to reach even more buyers if you use a hybrid fulfillment strategy rather than sticking with one fulfillment option. This is because a single fulfillment source would not get overburdened by fulfilling all of your orders. Hybrid fulfillment splits the workload so that everyone is able to do more, which will enable your online store to satisfy even more customers. Facilitates Growth By using a hybrid fulfillment strategy, you will be able to complete more orders in less time, which will benefit the expansion of your firm. Additionally, it means that you can relax knowing that order fulfillment is handled properly, freeing up your time to concentrate on other tasks like marketing and product development which will aid in the further expansion of your business. Drawbacks of hybrid fulfillment Has Less Consistency There is no guarantee that hybrid fulfillment techniques will perform equally well. You might ship orders more slowly by relying on dropshipping than a 3PL. Additionally, it can take your dropshipper weeks to deliver an item to your clients. Perhaps you would also prefer to include unique packing inserts in each box but your print-on-demand vendor does not offer this option. Although it is not a deal breaker, it can be frustrating for entrepreneurs that pay close attention to detail and are working to create a unified eCommerce experience. Is More Complex The obvious drawback of hybrid fulfillment is complexity. It can be a lot of work just getting things up and running when you are using several methods and multiple partners are involved, each with their own systems and tools. You must make sure that there is constant communication about the shipped items, inquiries from customers, etc. When everything is taking place in one location, fulfillment can be monitored much more easily whereas you could feel like you're spending more time organizing everything and finding information when you are using hybrid order fulfillment. Real-World Use-Cases for Hybrid Fulfillment For online stores, hybrid fulfillment is always a good option. However, there are many moving elements because you need to supervise numerous fulfillment activities. It can be difficult and time-consuming to manage your inventory across multiple locations and guarantee that orders are delivered on time using all of these varied strategies. Supply chain technology, on the other hand, makes it simpler to manage everything by centralizing crucial, real-time data. A hybrid fulfillment model can provide your company with the adaptability it needs to expand with the correct strategy, tools and technology. You should choose this option if you meet the following criteria: You already have a warehouse lease but you would like better coverage nationwide or in other countriesYou want to fulfill certain products by yourselfYou frequently test new goods, ideas, methods and channelsYou want to provide both pickup and delivery choices while you test out online sales for your brick-and-mortar companyYou have the resources to effectively coordinate all of the fulfillment need to execute your approachLarge amounts of eCommerce merchandise needs to be stored and managed but you lack the space or don't want to do it.To meet customer expectations and accommodate requests for product customization, you need a variety of fulfillment solutions Differences Between Companies That Would Benefit From Hybrid Fulfillment vs Those That Wouldn’t If you're still unsure about whether hybrid fulfillment is a good fit for your company, the table below should be able to clear things up: [table id=50 /] Conclusion: Why Choose WareIQ to Fulfill Your Online Orders? Having a trustworthy eCommerce fulfillment partner is essential whether you decide to go with a hybrid fulfillment model or choose to outsource 3PL fulfillment. If you need assistance with a variety of eCommerce requirements, you can consider partnering with WareIQ. WareIQ is one of India’s leading eCommerce fulfillment companies that uses technology to provide a competitive advantage to our customers. WareIQ can help your business by providing the following services: We offer a warehouse management system (WMS) that can integrate with more than 12 eCommerce marketplaces so that all your orders will be consolidated in one place and if you'd like to employ a hybrid method, you can even use WareIQ's fulfillment network.We manage all aspects of your fulfillment process, from inventory management and storage through delivery to your consumers' doorsteps.We provide ulta-fast delivery through our partnership with more than 20 shipping aggregators and automicatically assign the fastest and cheapest option for every order.You can store your inventory in our decentralized fulfillment centers across a nationwide network where orders are instantly chosen, packaged and shipped. With your eCommerce store integrated with WareIQ's best-in-class technology, any orders you relieve will be fulfilled to the highest standards. Hybrid Fulfillment: FAQs What is a hybrid fulfillment approach for eCommerce?Hybrid fulfillment is the practice of merging several distinct fulfillment strategies. These can include self-fulfillment, dropshipping and 3PL. For the best outcomes, hybrid fulfillment enables you to personalize and enhance your fulfillment strategy. What is cross-border fulfillment?The processes necessary to complete orders placed from abroad are referred to as cross-border eCommerce fulfillment. This includes managing the logistics of cross-border business operations, picking, packing and shipping. What is a fulfillment strategy?The business practices used to deliver goods and services to customers are referred to as customer fulfillment or order fulfillment. It's time to update or develop your fulfillment plan if your firm is scaling for the first time or if years of continuous development are starting to put your operation's capacity to fill orders to the test. How can I improve my fulfillment?Strategies for fulfilling orders that will enhance the fulfillment process are listed below:- Choose the right fulfillment partner like WareIQ- Maintain open channels of communication with your clients- Ensure that your internal order system functions properly- Make inventory finding easy for warehouse employees- Accept orders in multiple ways
August 23, 2022
Warehouse Capacity: Definition, Calculation, Importance and 10 Tips to Maximise Warehouse Storage Capacity in 2023
In the eCommerce industry, the biggest assets of an online company are its warehouses, dark stores, fulfillment centers, cold stores or whatever else is used for storing their products. As we know, a virtual marketplace does not require a physical store but it does require a place to store listed items. Every eCommerce seller has a warehouse according to the size and scale of their products and needs to abide by specific requirements such as temperature, size, proximity to transport hubs, etc. The main aspect to be concerned about in a warehouse is the amount of space it has to store products. Needs may be different for each seller but the way to ensure that there is enough space to not only manage inventory or store goods but also track products to prevent stockouts, expiration, tackle high demand , etc. In this article, we will go into detail about what warehouse capacity is, how to calculate it and tips to improve warehouse storage capacity. What is Warehouse Capacity? Warehouse capacity refers to the amount of available space for product storage. Warehouse capacity can assist in understanding the difference between theoretical working capacity and storage capacity. For eCommerce sellers, space is conceivably the most important resource in warehouses and other storage facilities. Businesses can considerably improve the number of products they can keep in the facility by optimizing the utilization of their warehouse space. They can save money on transportation and other expenditures by having more items in storage at once. Additionally, it gives the warehouse personnel easier access to the goods, enabling them to process orders more quickly and deliver the goods to the consumer sooner. Warehouse managers and business owners should take the time to analyze how much space they have and how well they're utilizing it because space can be scarce in a warehouse setting. [contactus_gynoveda] How to Calculate Warehouse Storage Capacity? The first step in figuring out how to improve your warehouse capacity is to understand its present capacity. Here is a quick tutorial on how to determine a warehouse's capacity expressed in feet: Determine how many square feet your entire warehouse complex is. In this instance, let's assume it is 10,000 square feet.Calculate how much space is being used overall for non-storage uses, including offices, restrooms, break rooms, loading zones, etc. Let's assume that this equals 2,000 square feet.To calculate the usable space in your warehouse, subtract the total square feet of non-storage space from the total square feet of your warehouse. The equation is as follows: Usable Space = Total Square Feet - Non-Storage Space Square Feet Next, figure out how much useful storage space you have, i.e., the maximum stack height or clear height. You must take into account the lowest-hanging overhead object for this, such as lighting fixtures or warehouse racks. Let's assume that this height is 30 feet.To calculate your storage capacity in cubic feet, multiply your maximum stack height by the entire amount of usable space: Maximum Height of Stack in Feet x Usable Space in Square Feet This might offer you a general idea of how to calculate the storage capacity of your warehouse, but keep in mind that you also need to take into account facility-specific elements, such as workspaces for packing and picking. You can optimize space depending on your company's warehousing demands, including the number of units and distinctive SKUs, total equipment and fulfillment space needed to operate a warehouse by knowing how to assess warehouse capacity. Importance of Warehouse Capacity for eCommerce Businesses Mitigates Miscalculations Logistics operations depend heavily on warehouse capacity, which extends beyond just optimizing for inventory storage. Determining how much inventory you can afford to keep on hand to meet demand while also lowering the risk of potential stockouts and backorders requires an understanding of your warehouse capacity. Reduces Storage Costs Having greater warehousing capacity is not necessarily preferable. Your warehousing and carrying costs, such as rent, storage, picking and packing, and inventory management chores, will go up as your warehouse's capacity and square footage increase. Understanding your warehouse’s storage capacity will help you determine how much space you need so that you can remove any excess or unwanted procedures. Speeds Up Order Fulfillment More room also makes it simple to keep more goods than is required, which can result in an accumulation of dead stock. It is from investing in more inventory upfront, where capital is restricted until it is sold. You can also use the room for order fulfillment in addition to storage. If so, you must select how to organize your warehouse for effective workflows that will allow for quick order fulfillment and improved order accuracy. 10 Tips to Increase Warehouse Capacity to Maximise Storage in 2023 There are different ways to concentrate on your warehouse capacity optimization if you are dissatisfied with the amount of available storage space you are using. You can improve your warehouse utilization rates and save time and money by making a few minor adjustments to the design and organization of your space. Here are 10 suggestions you can employ to make the most of the available space and increase the storage capacity of your warehouse: Use Storage Solutions Your warehouse's storage utilization will be directly impacted by the types of storage solutions you deploy there. Select solutions that are appropriate for your space's size, shape and products you are storing in order to achieve maximum storage capacity. For better utilization of your space, you can: Vertically extend your racksErect a mezzanine over the floor-level shelvesReduce aisle width in the racking areaModify storing methodsAdd spaces for storing half-palletsUtilize your warehouse management system to facilitate directed storageUtilize unused space Rearrange Aisles and Racks After selecting the best pallets, boxes and racks, it's time to organize how you store them to maximize your storage capacity. For the best fit and organization, group storage units and objects of the same size should be stored together. As long as they are still wide enough for your personnel and machinery to pass through safely and effectively, you can make your aisles a little bit narrower to put a few more rows in. Your storage capacity, cube size and total usage will all rise with a well-organized warehouse. It will also make your employees more productive because they will be able to move around and find things more easily. Increase Height Clearances The existing warehouse storage capacity you have is significantly impacted by the clear height of your building. Even though it could seem challenging to get more vertical space, you can improve your clear height by paying attention to any machinery, infrastructure or other objects that are suspended from the ceiling. You might be able to move, replace or adjust hanging lights, security systems, cameras or other objects to clear a few extra feet of space. To increase your clear height and thus, your possible storage space, consider mounting lights and security systems to the roof or walls rather than the ceiling. Keep Track of Seasonal Inventory Make sure to account for any volatility throughout the off-seasons if your warehouse stocks a lot of seasonal goods, such as holiday decorations, beach gear and winter clothing. Aiming for both an appropriate storage utilization number for the off-season and an optimal storage utilization number for the peak season are ideal strategies for warehouses that handle a considerable amount of seasonal inventory. It just would not make sense for them to maintain the same stock levels in the warehouse throughout the year, nor would it make sense to reorganize the space twice a year to accommodate the variations in inventory. Always Keep Some Extra Space In order to accommodate expansion and the introduction of new products, your warehouse's total storage cube should not be more than one-fourth of the total. If your warehouse capacity is operating at its full extent, it is an indication that it's time to expand your warehouse. You should always leave room in your warehouse for sale or growth since you never know when one of your products may become instantly popular. If that occurs, you will need to start stocking up on that specific item right away to meet demand. Before you face such an issue, being equipped to deal with it is a better alternative. Group Storage Locations Many retailers have different fulfillment centers and warehouses to store the same or similar products. To create more usable space, you can opt to store them in the same location so that it will be more organized and readily accessible if they are required urgently. This also creates more storage space across fulfillment centers so that more products can be stored. Store Excess Inventory in Off-Site Locations Some high-demand or seasonal products need to be ordered in large quantities to prevent stockouts and increased delivery times. However, these units might prevent other goods that also have decent demand levels from being stored in less-convenient locations. By storing excess inventory in off-site locations, warehouse storage capacity increases for more relevant items. Consider Using Dropshipping If your storage facilities and warehouse capacity are overburdened, consider making use of dropshipping so that products can be manufactured and shipped by the vendor directly and never have to be stored by you which creates more space for your other products while also maintaining inventory levels of other products directly through the vendor. Arrange Inventory Based on Demand Different products have varying levels of demand and this is based on a variety of factors such as season, relevance, price, age and more. It is important to store high-demand items in the most easily accessible way possible to ensure that they get picked and packaged swiftly while storing lower-demand items in less accessible locations. Calculate Your Storage Dimensions You should guess when it comes to your warehouse storage capacity. Do not just have a simple look to estimate how much space you are utilizing for storage capacity. Take the time to calculate and determine the logistics of your total space so that you are aware of how to arrive at an exact number for your warehouse's storage capacity and utilization. Knowing proper figures can help you create the most effective layout for your warehouse. Conclusion: Maximize Your Warehouse Storage Capacity with WareIQ Increasing warehouse storage capacity is of utmost importance to eCommerce sellers, especially for ones that have already started expanding their operations. There are many different ways to optimise your warehouse capacity but one of the quickest and most effective options is to partner with a 3PL fulfillment company. Do you require access to more storage space? If yes, you can entrust WareIQ to handle all of your decentralized fulfillment center locations along with their management requirements. At WareIQ, you not only get access to our nationwide network of fulfillment centers and dark stores but we also work with you to decide how to distribute it most effectively across our logistics network based on product demand and proximity to your customers. By shipping orders to various locations, you can increase the number of customers you serve while lowering shipping costs and shortening transit times. eCommerce sellers are given complete visibility and transparency into their fulfillment operations with our sophisticated, user-friendly interface. You can have insights into factors such as warehousing costs, historical data, inventory management and real-time inventory updates. We also offer an entire range of other eCommerce services such as order fulfillment and online marketplace integration through our custom WMS. Warehouse Capacity Frequently Asked Questions: FAQs What is the standard size of a warehouse?The standard size of the warehouse is more than one-fourth of the selling capacity of the particular seller although it varies depending on things like AOV, season sales and market demand. Are there any specific types of warehouse storage people may be searching for?Yes, people may search for specific types of warehouse storage such as "cold storage warehouse" or "dry storage warehouse." Are there any software or logistics services that people might search for when looking for warehouse capacity?Yes, people may search for information on warehouse management software or warehouse logistics services that can help them optimize their use of warehouse space. What is capacity planning?Calculating how many resources you will need to meet demand is known as capacity planning. The demand may be for the upcoming week, the upcoming season or even the upcoming year. Capacity planning includes, among other things, hiring personnel to satisfy anticipated demand. What is warehouse density?It is the ratio of the available storage area to the total warehouse space. Warehouse density is calculated with the following formula:Warehouse Density = Total Storage Area in Cubic Feet/Total Warehouse Area in Cubic Feet)
August 22, 2022
Conversational Commerce 101 : A Comprehensive Guide for eCommerce Sellers on Definition, Types, Benefits, Use Cases and How to Provide a Positive Chat Commerce Experience
In the current day and age, social media has become part of our everyday lives. eCommerce companies have observed this and are increasingly using social media as a tool for marketing. The main reason for its popularity is that everything is updated in real-time and opens up communication capabilities with multiple people. Customers increasingly rely on messaging apps for many types of communication including personal, professional and commercial interactions. Consumers are progressively using social media apps to research, choose and finalize payments for goods and services without having to contact, email or even go to a company's website because the app is where all the required processes take place. Chris highlighted the growing practice of offering goods and services through chat applications in an essay for Medium and referred to it as conversational commerce, a term that is now used globally to describe this phenomenon. Let us take a broader look at what conversational commerce is and why it is important in 2023. What is Conversational Commerce? Conversational commerce, also called conversational marketing or chat commerce, is a way that eCommerce sellers use conversations between their customers and themselves to market their goods and services. Customer communication is effective as long as it is tailored to each individual and helps customers advance through the sales funnel more quickly. Conversational commerce can take place in a variety of ways including through messaging platforms, chatbots and voice assistants. This shift in favour of chat apps was sparked and continues to be fueled by the rise in their user base as more people get access to the internet. With more than 2 billion active users, WhatsApp is the most popular messaging service followed by Facebook Messenger. WeChat, a Chinese-owned app, Snapchat, Telegram, and numerous other smaller companies are examples of the different modes of conversational commerce. [contactus_gynoveda] 4 Types of Conversational Commerce Messaging Apps Messaging applications contribute to far more natural and individualized consumer connections, which result in improved conversion rates. Customers who are more emotionally connected with your business spend more time and money on purchasing products and recommending them to other customers. You can communicate with customers using a messaging program, such as Messenger or WhatsApp and send and receive instant messages. Because they allow for instant private conversations and online purchases, consumers are keen to use them, hence positively affecting consumer behaviour. These apps have surpassed social media apps in downloads because they receive 20% more users. Additionally, buyers can send emojis, GIFs, videos and memes on messaging platforms, which makes conversational commerce more relaxed and increases customer engagement. Chatbots A chatbot is a piece of software that assists people by texting them the answers to their questions in a separate popup or window. Multiple people can speak with chatbots simultaneously and they can answer questions quickly and continuously and they can be used on websites and messaging services. This makes it possible to provide an automated conversational commerce experience through channels that are appropriate for different stages of the customer journey. Because of all these features, chatbots are also a highly common type of chat commerce as it helps brands engage with consumers with little effort. Additionally, chatbots don't require a learning curve from users that conventional apps do. Within a few clicks, you can inquire about the progress of your most recent order, find out if a certain product is in stock, or find the location of the closest store. They are more well-liked by clients who are less tech-savvy as a result. Live Chats One of the most commonly used forms of conversational commerce is live chat. Through live chats, customers can instantly get responses from retailers regarding a variety of issues and it is simple to use. It has a significant edge over email and phone communication due to the convenience it offers. Additionally, an employee can converse with two or three consumers at once, which helps brands shorten wait times and increase customer satisfaction. Live chat applications are conversational commerce examples that have potential. You can use it to connect with bashful consumers who might not otherwise seek your assistance and to proactively engage website visitors. Once the ice has been broken, you can direct the buyer to your website and provide them with tailored recommendations to aid them in making a purchase. Voice Assistants A voice assistant is a sort of software that responds to user inquiries and is triggered by voice commands. Voice assistants like Siri, Alexa, Cortana, and Google Assistant are a function that is increasingly common in many modern gadgets. Customers adore them because they are practical, and entertaining and allow for hands-free multitasking. They are becoming more and more popular, which motivates businesses to incorporate them into their conversational commerce and marketing plans. Voice assistants can provide quick answers or point users to your website, both of which will help you build more brand awareness. Certain voice assistants can also identify a user's voice. When a gadget is used by several people, such as a family, this function is extremely helpful. Natural language processing, artificial intelligence and machine learning enable voice assistants to learn about a specific user's preferences and provide suggestions that fit those preferences. Marketers can take advantage of this feature to customise their advertising efforts and provide a personalised chat commerce experience to customers. Advantages of Conversational Commerce for eCommerce sellers in 2023 Offers a Personalized Touch eCommerce companies should try to make a strong first impression on potential customers. You can take advantage of the chance to lend a helping hand to a customer who is visiting your store for the first time, create significantly stronger customer relationships and increase customer trust by assisting clients through the remaining stages of their customer journey by providing them with a competent conversational commerce experience. 90% of customers are more inclined to make larger purchases from companies that have left them with a good first impression. Use a chatbot to provide discount vouchers. Customers enjoy receiving promotional coupons and interacting with brands that offer them better deals more frequently. Utilize a voice assistant to enable your clients to order your products or search for important information. Give it a charming name and a persona that embodies the principles of your company. You can win clients' hearts far more easily by creating memorable interactions that resonate with them. Collects Customer Feedback It is far more relevant to obtain customer feedback through chat commerce than it is to use standard web forms. Use the Facebook post reply feature. Every person who comments on your Facebook post can receive an automated chatbot message from you with contact details and more information. You may, for instance, write a post promoting your most recent offer and promise to give users who comment more information. Every commenter can receive a personalized message from the chatbot and it can even ask for feedback thereafter. You can also use a post-live chat survey. Once a customer has finished speaking with a customer support executive, you can gather their comments and reviews. Customers are more likely to provide feedback if you ask them for it upfront and you can learn more about their needs by doing so. Reduces Cart Abandonment Every online store wants to avoid dealing with cart abandonment. To overcome this issue, you must first identify its root cause. High shipping costs are one of the most frequent reasons that consumers decide not to complete their transactions. Customers are frequently turned off by having to register for an account or a convoluted checkout procedure. Investigate the reasons why your clients abandon their shopping carts. Additionally, buyers frequently use their shopping cart as a wish list. They fill their cart with several items to determine their prices, only to depart to compare similar lists on other websites. Customers who have gathered products in their carts but haven't yet made a purchase should receive proactive greetings via a live chat or chatbot. Offer to assist the buyer in completing their order. 2 methods that can significantly help with reducing cart abandonment through chat commerce are as follows: Use the Checkbox Plugin With Facebook Messenger: It recognizes ongoing Facebook sessions and enables you to communicate with users whose orders are still in progress. To encourage visitors to return to your website and make an order, you can give them a discount.Use the Marketing App With Facebook Messenger: You can use Messenger to send messages to customers that have abandoned their carts. The program also allows you to use a popup to collect consumer phone numbers so you can contact them through SMS or Whatsapp. Increases Upselling and Cross-selling Opportunities Upselling and cross-selling can double your profits by encouraging customers to buy more items that can enhance the experience of their initial purchase. By selling more to consumers who are already considering purchasing from you, upselling and cross-selling can help quadruple your income if your efforts succeed. Make proactive connections with customers who have previously placed orders from you using a Messenger chatbot. In order to cross-sell your products, a chatbot can inform the consumer that you are currently selling an item that pairs well with their prior purchase. This entire procedure can be automated using chatbots and live chats in succession with messing apps. 4 Steps Involved in Providing a Positive Chat Commerce Experience Conduct Research Investigate other businesses in your sector to see how they make use of the possibilities of conversational commerce and list down all of the available options you have. To learn about the advantages and disadvantages of each option, request demos and register for free trials. If you already have a solution or a channel in mind, find out what the most well-known and exceptional instances are that you can use as inspiration. Don't forget to consider the feedback from your clients. Find out what your consumers think of your services by reading their reviews. You can also conduct interviews with a few of them to learn more about their current requirements. Analyze Your Objectives Consider the issues your team and clients are encountering before implementing your chat commerce strategy. Set attainable objectives that you want to accomplish. Getting closer to it will be made easier by lowering cart abandonment. Perhaps you want to boost sales or provide quicker, more convenient client service to increase their loyalty to your brand. After you have created your dream list, organize and rank your objectives to determine which are the most important for your company. This is crucial because it's possible that you can't change all of your procedures at once. It's sometimes preferable to make changes to certain elements and see how they function. Choose a Conversational Commerce Type Half the difficulty is choosing a trustworthy conversational commerce solution that works well with your ecosystem. Effective implementation and management make up the second half. Without expert personnel, this could be difficult to achieve. If you choose to use live chat, for instance, you will need to train your staff to provide excellent live help via text. Remember that the typical live chat response time is slow and some clients become irritated if they are required to wait longer. Perhaps using a chatbot platform is preferable if you are unable to provide quick service. However, that would also call for some expertise in conversational design. Perhaps hiring a company to install your product and manage the dialogues would be simpler. Think about the resources you have and how you can use them accordingly. Calculate Your Success Rate Even after you have neatly wrapped up everything, you still need to keep an eye on how you are doing. At every point of the client journey, tracking effective, real-time metrics can help you assess your performance and enhance your conversational commerce operations. You can figure out which methods have higher or lower success rates than others and choose to make changes accordingly. 10 Best Conversational Commerce Examples and Use Cases Crew Clothing A UK-based clothing company known as Crew Clothing wanted to run an ad campaign that targeted its ideal audience of customers below the age of 34 to highlight itself as the ideal option for Christmas gifts. It decided to use Facebook messenger since it is the most popular all for age groups between 25 to 34. Users that engaged with the ad were redirected to an automated conversation that asked them questions relating to their ideal gift ideas so that they could figure out which products they wanted to buy for themselves, friends or family. The campaign yielded exceptional results with almost 50% of customers who saw the ad purchasing something from the site, resulting in a 5x profit over what was spent. Source REN Clean Skincare REN Clean Skincare sought to reduce their cart abandonment rate to increase their profit margins so the company sent an automated chat conversation to customers who had abandoned their cart on the site on previous occasions to figure what made them leave without completing their purchase. Their chat message included casual language and emojis to make customers feel like they were talking to a friend rather than a business. Source Maggi Maggi is a highly successful brand in the instant food, seasoning and cooking segment that originated in Switzerland. The company wanted to run a conversational commerce campaign in Germany, one of its most successful markets. The company primarily used Whatsapp and Facebook messenger to launch a virtual assistant called Kim that could help customers around the clock by answering queries, sending links to important information and videos on how to make certain items. The campaign was deemed a success owing to the 200,000 messages that were sent within the first 8 weeks of the campaign. Source American Leather American Leather is a company that specialises in leather products. In an effort to gain confidence from its customers, the company set up a chatbot on its website known as AskAI that users could chat with to find out details such as their order status, warranty, directions to the closest store and many other details that customers want an answer to. By having an assistant that is available at all times on the main website, customers know that they can simply get the information they need on the fly rather than going through the hassle of dealing with customer support which can take frustratingly long to come to a solution. Source Alpha Lion Alpha Lion is a fitness and supplement company. The company mainly uses conversational commerce to increase sales through up-selling and cross-selling strategies. When a customer purchases a product, they are instantly greeted with a message that suggests a complimentary product to make the most out of the existing product. The chatbot subtly suggests that the existing product cannot be used to its full potential without the use of an additional product. It also communicates with customers while they are fresh off a purchase which proves that they are capable and willing to buy an item again. Source Maev Maev is a company that sells canine food. Since it is a relatively niche product, the company cannot always use conversational commerce to promote their products and rather defaults to using it as a means to strike up a conversation with customers about simple, canine-related products to show their audience that they are genuinely passionate about dogs, which will encourage dog owners to think more highly about the brand. Source Muddy Bites Most brands use conventional email or social media marketing to create hype around a product. While it can yield positive results, it can also lead to a lot of one-way communication with sparse replies dispersed amongst a sea of ignored emails. This is where Muddy Bites, a food and baking company, used conversational commerce to drum up enthusiasm around its latest offerings. The company sends an automated chatbot message with an engaging question to customers which increases the hype and visibility of the brand and product. Source Amazon Alexa Moving over to mainstream brands and technology that has become mainstream, Alexa is a virtual assistant that is used by various Amazon Products and can give users access to a wide range of information on the device and the internet by mentioning a simple trigger phrase like “Hey, Alexa”. While this may not be used directly to sell more products or promote the brand, the ease of use that it brings along with the instant recognition that it inspires is all the marketing that Amazon needs. You May be Interested in Amazon's Great Indian Sale. Source Starbucks Starbucks has hopped on the technological train by introducing its own app that can be used to order items, check on the order status, browse menus, get directions to the closest shop and much more. This negates the need for customers who are craving a cup of coffee to stand in long lines or travel to a physical store. The company has also implemented a chatbot to make the process of ordering feel more personal. Source H&M H&M, a world-renowned clothing store, has implemented the use of a chatbot on the messaging app Kik, to do a whole range of tasks such as promoting new product releases, communicating with customers, suggesting personalised product options and more. The goal of the chatbot is to make customers feel like they have their own personal assistant to help them make certain decisions, provide answers to queries and suggest products in various colours and sizes. Source Conclusion Conversational commerce is a step closer to the attention customers could similarly receive from a sales representative in-store. Customers no longer need to switch between text conversations and websites to obtain information and make purchases. In order to make it easier for people to purchase from brands, chat businesses are increasingly being collaborated with. The largest mode of conversational commerce is WhatsApp which also comes in a business version and has options for payment settlements through UPI. If you need help with fulfilling the increased amount of orders brought about by conversational commerce, you can partner with WareIQ, India's leading 3PL fulfillment company. With WareIQ, online businesses have a lot of room to grow since they have access to a solid fulfillment infrastructure, a team of logistics experts and committed customer support. Utilizing our services allows you to instantly send online orders to the closest fulfillment center where they are picked, packed, and delivered as soon as they are placed, saving you time, money, and additional delivery modifications. Additionally, WareIQ’s high-end WMS integrates with various selling platforms and can help to monitor information in real-time. You can also provide details to your customers about their order placement, fulfillment status, ET, etc. We also offer many more services, such as order fulfillment, last-mile delivery, an app store, a nationwide network of fulfillment centers and a selection of various shipping partners, ultra-rapid delivery and much more. Conversational Commerce: FAQs Why is conversational commerce important?Digital commerce is streamlined by conversational commerce, which substitutes some or all of it with natural, real-time contact between consumers and marketers. Customers can just open a messaging app and inquire about the goods they want or even place their order instead of scouring a website for information. Is a website considered conversational commerce?eCommerce is conducted through a variety of conversational channels, such as live online customer care, messaging applications, chatbots on websites or messaging apps and voice assistants—all of them use technology like speech recognition and natural language processing. What are a few examples of mobile commerce?In-app purchases, mobile banking, virtual marketplace apps like the Amazon mobile app and digital wallets like Google Pay and Amazon Wallet are a few examples of mobile commerce. What are the different types of mobile commerce?Mobile payments, mobile banking and mobile buying are the three different types of mobile commerce. A user can buy a product utilizing mobile shopping by using an app like Amazon, a web app or a mobile device.
August 18, 2022
What is Distributed Warehousing and How is it Beneficial for eCommerce Sellers in 2023?
It is difficult to recall a time when online orders would only be delivered after multiple weeks. Today, multiple companies and selling platforms claim to deliver their products on the same day and some even in hours. Premium users are usually given priority in this regard. On the technical front, orders are placed, immediate confirmation messages/emails are sent automatically, and the in-house staff gets notified about the order and packs the product instantly so the package can be ready for delivery within an hour but after this, the product has to get delivered to the customer. It is can prove to be a challenging task to run. But there are sellers who, with the help of distributed warehousing, are providing same-day delivery and next-day delivery. In this blog, we will discuss distributed warehousing in detail, how it is helpful and how you can use it to lower your operating cost. What is Distributed Warehousing? Distributed warehousing is a novel kind of warehousing in which a company delivers and distributes products from a number of smaller, strategically-placed warehouses in major cities across the nation. The main objective of distributed warehousing is to take advantage of providing quick order fulfillment by storing inventory closer to customers. Additionally, this business model gives owners access to inventory and on-site requirements from virtually anywhere. Storage, fulfillment, cross-docking, retail distribution, on-site co-working, and other tasks are carried out in these warehouses. Distribution warehouses are connected to particular distributors for particular items. For example, a laptop manufacturer would think about working with a distributor who represents computers and their peripherals. The distributor would keep those computers in its warehouse and ship them to the stores that would eventually sell them. The distributor may provide training or support for those laptops in addition to storing and distributing the goods. But doing so raises the manufacturer's costs and lowers their profit margin. Unlike laptop manufacturers, a clothing manufacturer doesn't need the same kind of support and pays less compared to a specialist distribution warehouse. Because of this, a key factor in deciding what kind of warehouse to use is the product type. [contactus_uth] 3 Types of Warehousing Models for Online Business Single In-House Warehouse Most new eCommerce companies typically rent one or two large, strategically situated warehouses and run their business independently. Although this conventional model has short-term viability, it is neither adaptable nor scalable. Finding and establishing new storage facilities will take time and work each time you try to increase your footprint. The strategy also attracts large fixed operational costs and calls for a significant amount of cash to invest in properties and long-term leases. Additionally, because the warehouses are centralized, each shipment will have to travel a significant distance, delaying the completion of orders. On the other hand, you do have total control over warehouse operations with this arrangement. A big internal workforce will be needed to manage the warehousing procedures, but it helps to assure quality control. That's where warehousing companies come into the picture, read more. Decentralized Warehouses at Multiple Locations As the name suggests, decentralized distributed warehousing means several warehouses are placed at multiple strategically chosen locations for easy operations, low costs, and proximity to transport hubs and areas of high demand. Read our blog on decentralized inventory to know how it helps eCommerce businesses in 2023. It will be easier to understand the benefits of distributed warehousing if you compare the pros and cons of decentralized warehouses with the conventional warehousing technique of centralized storage systems. Here are a few pros and cons of Decentralized warehouses: Pros Lowers delivery costsReduces delivery timeMeets the high expectations of buyersHas higher successful delivery ratesIs easy and cost-effective to return or exchange goodsEases distribution at batch level Cons Requires a big team to operate multiple warehousesNeeds huge investment and operational costHas reduced efficiency without technologyIt can be complicated to operateNeeds highly trained personnel Outsourcing Storage to a 3PL Growing companies should outsource their warehousing needs to a tech-enabled 3PL service provider. This approach delivers the advantages of distributed warehousing without the majority of its problems, making it the greatest method for streamlining fulfillment in general. While you do have to pay for shipping, fulfillment, and storage costs, you gain access to a larger network of sites without having to make a financial commitment to renting or purchasing those locations. Additionally, 3PLs provide value-added services including digital warehousing tools that automate SKU distribution and management as well as order processing and fulfillment. Distributed Warehousing Vs Public Warehousing The public warehouse option usually has fewer amenities than distributed warehousing but it is lower in cost. Some public warehouses may not include features like temperature control, pick and pack or a state-of-the-art inventory management system while others will provide one or more of these auxiliary services. Requirements for public warehouses include flexibility, affordability, and short-term contracts that might not be possible with distributed warehousing. The best storage facility for your goods should be chosen after considering a number of aspects, such as price, time commitment, business model, product kind, and inbound and outgoing shipping requirements. Let us look at the differences in detail: [table id=47 /] Why is eCommerce Moving Towards Distributed Warehousing in 2023? Benefits of Distributed Warehousing in eCommerce There are several benefits of distributed warehousing such as easy deliveries, high rates of successful deliveries, easy returns, etc. but the below points are the most important ones: Cost-Effective Customers care about the delivery time but they care even more about delivery costs. In a study, it is found that a staggering 80% of buyers chose free shipping over speedy shipping when given the option. In most circumstances, the distance traveled and the cost of shipping is directly proportional where the more the distance traveled, the more expensive the shipping will be. Distributed warehousing allows you to move inventory closer to customers, reducing average shipment distance and consequently, average shipping expenses. Time-Saving Two-thirds of buyers expect 2-day delivery and again, more than 80% of consumers are more likely to make a purchase when 2-day delivery is an option. As a result, providing quick shipment is crucial to retaining current clients as well as attracting new ones. Distributed warehousing, unlike shipping from a single warehouse, promotes speedier shipping by keeping goods in fulfillment facilities that are practically closer to common order destinations. As a result, delivery times are shortened because the average distance that orders must travel is decreased. Businesses can offer 2-day delivery in this way without having to invest in pricey, accelerated solutions like air shipment. Meets Customers Expectations Customers these days look for an easy and convenient delivery experience and distributed warehousing allows a seller to meet these expectations. In cases of returns or exchanges, it is a win-win situation for both parties as the distance from the location to the warehouse is reduced. Oftentimes, buyers require their orders to be delivered as soon as possible and this is made possible due to distributed warehousing. How WareIQ is the Best Option for Distributed Warehousing for eCommerce Sellers in India? WareIQ's distribution and storage services can handle all aspects of inventory distribution if you are ready to expand your geographic reach efficiently and affordably. Along with our expanding fulfilment distribution network that consists of multiple fulfilment centres and dark stores across the country, WareIQ uses its warehouse management system (WMS) and logistical know-how to help you scale your business more effectively and with less effort. As a 3PL distribution partner, WareIQ provides optimized recommendations for the warehouse where your products should be kept to increase supply chain effectiveness. The order is instantly forwarded to the nearest warehouse to the customer as soon as it is placed. Order processing, fulfilment and delivery are then handled by WareIQ, freeing up your team to concentrate on the more important objectives of your business. Through a single dashboard, you can even keep track of inventory levels in real-time across more than 12 eCommerce marketplaces and it offers complete visibility into warehousing costs, transit times, and other statistics. For brands that require assistance managing inventory in real-time, decrease picking, packaging, and shipping errors, and want to scale with ease, WareIQ has a best-in-class warehouse management system (WMS). [signup] Distributed Warehousing: FAQs What is warehouse distribution management?Moving finished items from a producer or supplier to the end user is known as distribution management. The procedure includes storage, inventory control, packaging, shipping and delivery. What is distributed warehousing?Distributed warehousing refers to the practice of storing and managing data across multiple, geographically dispersed locations. This allows for faster access to data, improved disaster recovery, and increased scalability. Why is distributed warehousing important?Distributed warehousing can provide several benefits, including improved performance, scalability, and disaster recovery. It can also help to reduce costs by allowing organizations to store data closer to where it is needed. Are there any challenges associated with distributed warehousing?One of the main challenges associated with distributed warehousing is ensuring consistency across multiple locations. This can be difficult to achieve, particularly when dealing with large amounts of data and complex data relationships. Other challenges include maintaining security and compliance, and dealing with latency and bandwidth issues. What are some examples of distributed warehousing solutions?Some examples of distributed warehousing solutions include Hadoop, Cassandra, and MongoDB. These solutions are often used to store and process large amounts of data in a distributed environment. What is the purpose of a distributed warehousing center?A distribution center is a structure used for product storage and delivery of the products a business manufactures or sells. The distribution chain for goods, order fulfillment and the storage of manufactured goods until they are shipped to wholesale, retail, or clients, includes distribution facilities. What is the prime focus of a distributed warehousing center?The distribution center places more focus on the movement of products than on their storage. To decrease inventory, distribution centers make sure that slow-moving items are eliminated and that the options they stock are either used up or returned. Is warehousing profitable?A warehouse building can be economical to own or operate, especially in densely populated areas with high rents and transportation expenses. Empty warehouses provide a relatively cheap means for startups to expand without incurring any upfront starting costs. Comparatively speaking, warehouses typically offer better income than residential real estate.
August 17, 2022